Cash out refi on investment property

[Cris Larreo]

Hello, I have been in the market for a cashout refi on an investment property I own.  Because I am recently a self employed by choice, I am finding it challenging to get this cashout refi loan in the conventional loan world.  Is there some advice out there from lenders who will look at a cashout refi on the merits of the investment property itself and not my own personal income?  Any help or guide map on this subject it appreciated, Cris

[James Masotti]

@Cris Larreo - There are a ton of lenders that will do mortgages for self employed folks as many REI are in fact running their own companies. A few options are to either find a portfolio lender who will be able to lend against the asset rather than your personal financials which is a result of Fannie Mae and Freddie Mac guidelines, or set up an LLC and start talking to the commercial banking groups around you. As long as your personal financials are strong, you have a track record of investing (i.e. this isn't your first property and you've been doing it for two years), and the rent on the property covers 1.25 times all of your expenses include debt service...then you should be able to find someone to lend for you. I had to get a few referrals and call many banks before I found someone who had the loan offering I wanted, but call around and you'll likely find one that does.