New to Real Estate · Albany, NY · Member since 2020 · 35 posts · 9 votes
Hi BP,
I'm formulating my options for financing an owner occupied 2-4 unit in upstate New York. I found a lending service (Bankers Healthcare Group) specific for health care professionals (I will be a physician assistant next May). Given the many benefits of buying a property with cash, my plan is to use a private loan from this company and/or from family/friends to buy the property and then refinance the property using a bank loan, thereby paying off the private lender/s and getting better terms. I'm wondering what types of obstacles/constraints I might run into with this plan. Thanks all!
Lender · Long Beach, CA · Member since 2013 · 496 posts · 296 votes
4y
Just finished 2 refinances with private loans. Neither of the lenders (not companies, private individuals) had the original note nor Deed of Trust (CA is a deed of trust state). So we had to jump through extra hoops to get it done. The icing of the cake is one of the lenders lives in Holland and the Embassy was not open (for Notary). More hoops to jump through.
Long story short, refinancing from a private lender is not a big deal, if they have the paperwork needed. You should be fine.
Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 958 votes
4y
@Account Closed, I know that there is a doctor's loan for 0% down that can be obtained. You should google it and find a mortgage broker that is familiar with it.
Lender · Long Beach, CA · Member since 2013 · 496 posts · 296 votes
4y
Just finished 2 refinances with private loans. Neither of the lenders (not companies, private individuals) had the original note nor Deed of Trust (CA is a deed of trust state). So we had to jump through extra hoops to get it done. The icing of the cake is one of the lenders lives in Holland and the Embassy was not open (for Notary). More hoops to jump through.
Long story short, refinancing from a private lender is not a big deal, if they have the paperwork needed. You should be fine.
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
4y
Hey @Account Closed, fellow PA investor here. I have my 10th unit under contract right now and started less than 2 years ago and have used traditional financing for all of them. If you're going to owner occupy, why bother going through the hassle of creative financing if you're going to have a strong consistent W2 income? I used an FHA loan for my first triplex and it was pretty easy and went fairly smoothly with only 3.5% down and all of the closing costs covered by the seller. In my opinion, using private money to close deals makes the most sense when you're not owner occupying and the bank would require 20-25% down.
New to Real Estate · Albany, NY · Member since 2020 · 35 posts · 9 votes
4y
@Bill Goodland Great to meet you Bill, very cool to see a PA doing what I'm hoping to do in the future. How long did the FHA loan property take to acquire? I was under the impression that FHA loans could be a hassle as well, but I don't know to what degree.