Refinancing (2) Commercial loan & Hard money (SELF EMPLOYMENT

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Refinancing (2) Commercial loan & Hard money (SELF EMPLOYMENT

Kyle Root
Rental Property Investor · Appleton, WI · Member since 2019 · 36 posts · 11 votes

Need some advice on what to do here. Quit my job 2 months ago and I am now self employed as an agent and investor. 

I currently have (2) commercial loans (balloon loan) under my personal name and if I cant refi by feb 2021 I owe the full amount. I have a hard money loan under my LLC that I need to refi in 4 months. Every lender I have went to says I need to show employment. I thought I knew the guidelines but apparently a lot of programs are now either on hold or gone because of Covid. Can someone help me out here and push me in the right direct or does anyone know a good lender that could help me out? In the wisconsin area.

Please only serious responses here that will help me out. Thank you guys in advance

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Alex BekezaBusiness Member
Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
5y

@Kyle Root There are 30 year fixed commercial options out there which would not require any length of employment or even calculate your DTI at all. (no tax returns or pay stubs). Instead they'd be based entirely on subject property cash flow and depending exactly where you'd be on FICO/LTV/other loan level details rates would range anywhere from 4.75%-6%. These go up to 75% LTV, allow LLC vesting, and have no cap on the # of properties you own. Great to help investors scale pass their conventional limitations.

[email protected]818-606-8823
Investor Property Loan5307 Reviews
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  • Scott Schultz
    Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
    5y

    Why won't the Commercial lender not renew? Do the properties cash flow? Adequate DSCR?

    0Reply
  • Kyle Root
    OP
    Rental Property Investor · Appleton, WI · Member since 2019 · 36 posts · 11 votes
    5y

    @Scott Schultz yeah man they cash flow nicely; his concern is that I recently quit my job and doesn’t want to refi and hold debt because I can’t show self employment income. Which I became two month ago or so.

    Here's what I don't understand. I have leases for all of them and can show they rents are much higher then PITI. For lender that work with investors this should be a no brainer in my eyes.

    1Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Kyle Root There are 30 year fixed commercial options out there which would not require any length of employment or even calculate your DTI at all. (no tax returns or pay stubs). Instead they'd be based entirely on subject property cash flow and depending exactly where you'd be on FICO/LTV/other loan level details rates would range anywhere from 4.75%-6%. These go up to 75% LTV, allow LLC vesting, and have no cap on the # of properties you own. Great to help investors scale pass their conventional limitations.

    [email protected]818-606-8823
    Investor Property Loan5307 Reviews
    WebsiteView Page
    2Reply
  • Nicholas Covington
    Mortgage Broker · Dallas, TX · Member since 2017 · 657 posts · 275 votes
    5y

    @Kyle Root

    What are the values of the properties? There are tons of lenders out there offering rental loans that don’t require income.

    1Reply
  • Kyle Root
    OP
    Rental Property Investor · Appleton, WI · Member since 2019 · 36 posts · 11 votes
    5y

    @Alex Bekeza thank you for that. I had no idea! I’ll try to do some research and see if I can find some in my area!

    0Reply
  • Kyle Root
    OP
    Rental Property Investor · Appleton, WI · Member since 2019 · 36 posts · 11 votes
    5y

    @Nicholas Covington the two commercial loans Value is 80k single family 2 bed 1 bath with 300 a month positive cash flow and my hard money loan is 155k and once renovations are complete and rented I’ll be 600-650 positive cash flow.

    Any suggestions on lender?

    0Reply
  • David Kelly
    Lender · Nationwide Lender · Member since 2019 · 391 posts · 140 votes
    5y

    @Kyle Root

    It would take sometime to do an income calc based off your taxes with your schedule E. I have a program called loan beam I use. If you want to connect I can take a look at it today. I’m out of Mn and lend in 48 states. Send a PM

    0Reply
  • Nate Sanow
    I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Kyle Root

    Look into non-QM

    0Reply
  • Nghi Le
    Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes
    5y

    Sounds like you need to move away from conventional loans/banks and move towards asset-based loans, which is what a few folks here have mentioned.  Here's a comparison of the two:

    PM me some more specifics about your scenario and I can give you some recommendations.

    1Reply
  • Kyle Root
    OP
    Rental Property Investor · Appleton, WI · Member since 2019 · 36 posts · 11 votes
    5y

    @Nghi Le that’s super helpful. Thank you!

    0Reply
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