Investor · Howey in the Hills, FL · Member since 2013 · 376 posts · 114 votes
In other words, if I can't find a small bank to work with me in my area, should I start calling banks in different states?
I'm having a really hard time finding anyone who will lend on investment properties owned by LLC's. Also, everyone says it has to season for 12 months before lending on appraised value. I'm looking for more like 6.
Trying to get my piece of this mythical BRRRR strategy...
Investor · Kansas City, MO · Member since 2017 · 791 posts · 1k+ votes
9y
Definitely! I use a smaller bank and the state line doesn't matter. Even though I get loans with my LLC's, I do have sign personal guarantees with them.
As far as the "seasoning time," that is a bank by bank thing. My experience has been if it's 6 units or less all that has mattered is work is done and some of the units are leased up to prove viability of lease rates and I've refinanced within 3 months from close of loan to close of loan. Typically 4-6 weeks to do the work, 3-4 weeks to get some leases signed, and 3-4 weeks to refinance.
Investor · Kansas City, MO · Member since 2017 · 791 posts · 1k+ votes
9y
Definitely! I use a smaller bank and the state line doesn't matter. Even though I get loans with my LLC's, I do have sign personal guarantees with them.
As far as the "seasoning time," that is a bank by bank thing. My experience has been if it's 6 units or less all that has mattered is work is done and some of the units are leased up to prove viability of lease rates and I've refinanced within 3 months from close of loan to close of loan. Typically 4-6 weeks to do the work, 3-4 weeks to get some leases signed, and 3-4 weeks to refinance.
You may want to consider a private money/hard money lender if you can't find another option. Use private money for a quick seasoning period before refinancing into a conventional loan.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
9y
@Matthew B. I would certainly try to seek more lenders. There some lenders who are specifically designed to be "community" banks and their charter prevents them from going outside their territory but there are plenty of banks that lend in a larger territory. Have you visited other investor clubs in your area? That might be a good place to meet other investors who already partner with some banks.