Mortgage Lender Wanted

[Olusola Abitogun]

We have 2 investment properties that we need to refinance.

Credit: 613 (Low mostly because of high Credit Card usage to complete the project.)

Income $140K/yr, No personal mortgage

Location: Phillipsburg, NJ

Property 1:

4 units (fully rented out) including 3 garages that rented separately.

Monthly revenue of $3500

Appraised at 183K but need to refinance at least $150K to cover all the Cost (hard Money & Private investors)

Property 2.

4 Units

Currently Vacant, 99% done with renovation.

Potential Rent revenue of $4800/ month.

Appraised value: $223K 7 months ago or so.

Looking to refinance for $180K

Please message me if you are can work with the credit and income.

[Stephanie P.]

@Olusola Abitogun

I don't want to burst any bubbles...

...but sell these properties.

There are few rules in this business, but here are two:

1.   Don't ever fall in love with a property
2.   Do what the numbers tell you to do; it's all a math problem.

In both cases, the numbers are too tight for a conventional or a portfolio lender.  On property 1, if your numbers are right,  you're sitting at 82% loan to value and on property 2, you're at 79%.  That's before closing costs.  Keeping them until you refinance them is going to eat you up in carrying costs while you search and then, IF you do find a lender, the fees and interest rate will eat what's left.

Max ltv on a 4 unit for cash out, conventional is 70%.  Portfolio cash out max is 80% max, usually 75%.  

Unless you're prepared to come to the table with the difference plus closing costs, sell (and why would you refinance when you could make 10's of thousands selling).  The eventual cash flow will not offset the amount of money you waste searching for a lender who will accept a 613 score on a high ltv investor property.   

Take your profits, do what you have to to get your credit score up and then go get some more.

Get them on the market today. Don't look for a lender.  Find a good Realtor.

Stephanie