Cash-Out REFI Banks in Iowa [BRRRR]

Buying & Selling Real Estate
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Cash-Out REFI Banks in Iowa [BRRRR]

AJ Smith
Rental Property Investor · Bettendorf, IA · Member since 2018 · 153 posts · 75 votes

Hi all,

Interested in finding cash-out refi banks for my BRRRR journey starting up next year.

Anyone have any cash-out refi lenders they'd be willing to share?


Willing and ecstatic to do the ground work, just looking for a place to start.

Iowa Investors, Iowa Realtors, Iowa Lenders, Iowa Property Managers, Midwest Investors, Midwest Realtors, Midwest Lenders, Midwest BRRRR, would love to get your input.

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Doug Karkow
Rental Property Investor · Cedar Rapids, IA · Member since 2016 · 39 posts · 19 votes
6y

Hi @AJ Smith, since it appears you're in the Iowa City market, I would highly recommend CBI Bank & Trust. Specifically, Zach Kenyon (Assistant VP) and Art Floss (Market President) on the commercial side. Depending on your experience and financial strength, they are an excellent option for BRRRRing properties in the area. I purchased a single-family house in Cedar Rapids back in December for $71k with a rehab budget of $30k. They performed an as-completed appraisal prior to closing and came up with an ARV of $145k. Because of this high ARV, they financed the whole $71k purchase (I actually got a check back at closing for ~$600) and put the $30k in renovations on a construction loan. Ultimately, we went ~$4,000 over on the rehab so that's the ONLY cash I had in the deal thanks to them! In the end, $4k in cash in exchange for $40k in equity and ~$300/month in cash flow after ALL expenses (including CapEx)! PM me if you're interested and I can get you in touch with them.

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  • Darson GranthamBusiness Member
    Realtor · Des Moines · Member since 2018 · 304 posts · 253 votes
    6y

    Hey @AJ Smith, finding a bank that will do a cashout refi one day MIGHT change the next day depending on the bank, so make sure you are not putting all your eggs on one bank, see what I did there :) 

    But seriously, in Iowa Luana savings bank, Greenstate Credit union have both been known to be very good with investors.  I've also been told Lincoln savings bank and Hardin County Savings Bank have options.

    If you think about this, MANY banks will do a cash-out refi, the question will become, what are the terms?  

    For example, if the property is valued at 150K and you have an 80K initial loan on it and 60k in rehab.  One bank might say they'll give you cash up to 60% of the value.  The next bank might say, we'll give you 70% of the value.  Neither of those cash-out refi's is enough to pull ALLL of your money out.  But that doesn't mean you shouldn't take the deal.  You may end up with 5-15K in the deal.

    Doesn't mean you are a failure or didn't BRRRR it right, it just means you didn't get ALL your cash out.

    Similar topic. While you are talking to banks about cash-out refi, ask them if they will fund a rehab loan for you. Some banks will buy the house and then fund your rehab costs up to 70% of the ARV. This is SIMILAR to a BRRR, but different mechanics.

    [email protected]515-612-6013
    3Reply
  • AJ Smith
    OP
    Rental Property Investor · Bettendorf, IA · Member since 2018 · 153 posts · 75 votes
    6y

    @Darson Grantham great advice! I'll follow up with those lenders and I'll make sure to ask about terms (LTV) when I'm speaking with lenders.

    0Reply
  • Doug Karkow
    Rental Property Investor · Cedar Rapids, IA · Member since 2016 · 39 posts · 19 votes
    6y

    Hi @AJ Smith, since it appears you're in the Iowa City market, I would highly recommend CBI Bank & Trust. Specifically, Zach Kenyon (Assistant VP) and Art Floss (Market President) on the commercial side. Depending on your experience and financial strength, they are an excellent option for BRRRRing properties in the area. I purchased a single-family house in Cedar Rapids back in December for $71k with a rehab budget of $30k. They performed an as-completed appraisal prior to closing and came up with an ARV of $145k. Because of this high ARV, they financed the whole $71k purchase (I actually got a check back at closing for ~$600) and put the $30k in renovations on a construction loan. Ultimately, we went ~$4,000 over on the rehab so that's the ONLY cash I had in the deal thanks to them! In the end, $4k in cash in exchange for $40k in equity and ~$300/month in cash flow after ALL expenses (including CapEx)! PM me if you're interested and I can get you in touch with them.

    8Reply
  • Darson GranthamBusiness Member
    Realtor · Des Moines · Member since 2018 · 304 posts · 253 votes
    6y

    @AJ Smith what @Doug Karkow just explained is the exact scenario I was trying to explain! :). Well done Doug!

    [email protected]515-612-6013
    2Reply
  • Nate Roelfs
    Member since 2017 · 5 posts · 3 votes
    6y

    I work with Amy Lang at Collins CCU. I'm able to get a loan for 80% of the purchase price and then refinance at 80% ARV as soon as the renovations are done.

    3Reply
  • Richard Shahnazi
    Real Estate Agent · Iowa City, IA · Member since 2019 · 25 posts · 14 votes
    6y

    @AJ Smith

    Hi AJ, I’ve been on the hunt for the same thing in the Iowa City area. The best I’ve found for cash out refi locally is with Greenstate’s commercial lending department. They are doing 80% on the lesser of the purchase+rehab cost or the appraisal.

    2Reply
  • AJ Smith
    OP
    Rental Property Investor · Bettendorf, IA · Member since 2018 · 153 posts · 75 votes
    6y

    Thanks for the responses, all! Working on connecting with each of these lenders.

    1Reply
  • Ian Parkinson
    Coralville, IA · Member since 2020 · 3 posts · 1 vote
    5y

    Hey @AJ Smith, any news or updates on the BRRRRs this year? Or even your experiences with the lenders?

    0Reply
  • AJ Smith
    OP
    Rental Property Investor · Bettendorf, IA · Member since 2018 · 153 posts · 75 votes
    4y

    @Ian Parkinson Greenstate Credit Union has been great to work with! They hooked me up with a 0% down owner occupied mortgage for a 4plex townhouse. In terms of Cash Out REFI banks, check out my findings below:

    0Reply
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