Multifamily Purchase and Refi

[Derrick Washington]

I need help understanding how to refi a multifamily if its needs no work its been updated and great cash flow. The properties are around $600k to $1.2 million. If it was a BRRRR then I get it however if I have to put 25 percent down is it possible? Also the loan would be with a hard money lender in a LLC.

Thanks

[Mordy Geffner]

@Derrick Washington - A lot of different variables that go into this to determine what makes the most sense. What's the game plan on this one? 

Is this a lease up? Is this a capex value-add play? Is this a hard money acquisition simply because it's a quick close? 

Generally speaking in my experience, the reason to purchase multifamily properties with hard money would be mainly because there is a significant vacancy and it either needs a simple lease up or a capex value play along with a lease up.

Assuming this is the case in order to get the full cash out that you would be looking for you would need anywhere from 12-18 months seasoning (depending on the lender) and you would need to be "stabilized" at the time of the refi. I've done many of these across the country- Once you have the necessary seasoning there is no rule that says that you need to keep your original 25% in the deal at the time of the cash out.