Refi mortgage from private lender

[Erin N.]

Hello all,

I did a BRR on a duplex a few months ago, and am now looking to complete the final R. I inked the deal right before watching the BRRR webinar, and I wish I had seen it first. I only secured 12 month terms from my private lender, so I have to refi within 12 months. What are my options for refi so I can pay off this note before the deadline? I'm concerned about 18 month seasoning requirements, but I also don't know if they would come into play in my situation. Here are my numbers:

$153,914 sale price

$75,000 loan from private lender

$78,914 cash payment for the balance

$30,000 renovations

$1100/mo 12 mo lease for one unit

$2000/mo month-to-month rental on Airbnb for the second unit - 25% vacancy so far

$950/mo private lender payment

$3000 annual property tax

$900 annual insurance

Ideally, I'd like to refi for enough to reimburse myself for the renovations and part of the cash I paid to buy the property.  I'm not really sure where to start.  I appreciate any advice you can give!

Thanks!

[Charlie Fitzgerald]

I would talk to a credit union or small community bank for this. The loan amount at $75,000 is almost too small for a mainstream lending source. The CU or Smaller Community Bank will love this deal. With your cash flow on the property, I would look at a 15 year fixed note at whatever LTV they will give you. If you ever look for a better hard money lender again, let me know. All of my programs include the option to extend the term. Our rates are very reasonable and we do 1, 2 and 4 year programs...all payments are interest only, and we fund in 4-7 days :)

Good luck.

Charlie