Looking to refi multiple units in ONE transaction?

Question

Purchase or refinance multiple non-owner occupied rental properties!!  Terms include 30-yr, interest only and ARM options.

What challenge have you confronted in closing on multiple properties?

Marcia Lynn Zigler · Answer

Thank you AJ,

That is why having the option to close multiple properties in one transaction with my preferred Lender, that has this experience, is the ideal scenario.  Thank you for your response!

Best,

Marcia

AJ Exner · Answer

Hey @Marcia Lynn Zigler,

From what I've experienced with my clients doing this, is timing everything to hopefully close at around the same time and mitigating fees/costs.

For the timing aspect, between application, appraisal, underwriting, and everything else, there are just a lot of moving parts to time up. I have found it helpful to (if possible) keep it with one lender and even within that lender, using the same processor/underwriter to keep things running smoothly. Even within a single lender, if it has different eyes on similar properties, one might find issue with something that delays the process while the other doesn't. So if you keep it within one group/entity/person, then if you clear an issue with one, you do with all.

Then it becomes about the $$$. Most lenders that I know will give 'multipack' discounts, so I would ask about that going into it. I think its worth keeping them as separate assets compared to a portfolio to keep flexibility in future transactions, but in doing so it will have different costs associated.

I would also make sure that the minimum qualifications of the lender is met by each property. I've had times where we've ran 4-5+ properties at once, and inevitably one or two doesn't meet the minimum property value or loan amount and we have to pivot lenders or ask for an exception, which doesn't always happen.

Hope that helps, and good luck! Happy to help where I can.