Rental Property Investor · Windham, ME · Member since 2017 · 60 posts · 22 votes
I’m currently seeking to cash out refi a triplex I bought with cash. It’s owned by my LLC. I’ve been offered a 60% LTV based on purchase price and rehab costs not an appraisal. Terms at 30 yrs at 8-9% amortized. 60% seems a bit low but it will definitely help to purchase another deal. What are other getting in terms of commercial refinancing?
I’m currently seeking to cash out refi a triplex I bought with cash. It’s owned by my LLC. I’ve been offered a 60% LTV based on purchase price and rehab costs not an appraisal. Terms at 30 yrs at 8-9% amortized. 60% seems a bit low but it will definitely help to purchase another deal. What are other getting in terms of commercial refinancing?
Rate seems high but LTV seems about right for commercial financing on a cash out, depending on your experience level. The "limited liability" part cuts both ways. Your liability being limited represents more risk for a lender. Forcing you to leave 40% equity in it makes up for that.
I’m currently seeking to cash out refi a triplex I bought with cash. It’s owned by my LLC. I’ve been offered a 60% LTV based on purchase price and rehab costs not an appraisal. Terms at 30 yrs at 8-9% amortized. 60% seems a bit low but it will definitely help to purchase another deal. What are other getting in terms of commercial refinancing?
Rate seems high but LTV seems about right for commercial financing on a cash out, depending on your experience level. The "limited liability" part cuts both ways. Your liability being limited represents more risk for a lender. Forcing you to leave 40% equity in it makes up for that.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
8y
@Benjamin Dutil the crux of this is the loan type you are using. So if you were to use a Fannie/Freddie loan you would be receiving 70% more in the area of 6% with a 30 year rate. But you have to qualify for that loan type. It might be more difficult to qualify for that loan type depending on your profile. Maine is one of those mythical states that we don't know much about unless lobsters are involved. Maybe 60% is normal for your state but I would certainly call around as well. Good luck!
Real Estate Agent · Biddeford, ME · Member since 2017 · 213 posts · 150 votes
8y
@Benjamin Dutil Those terms seem high for this market. Fannie/Freddie programs are at least around 70% LTV and rates are much better than what you are being quoted. I would recommend calling around to see what other options might be out there. Some of your local banks like Bangor Savings and Saco Biddeford have portfolio options and lenders like RMS and Movement have access to state and federal programs.
Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
8y
I've usually gotten 75% LTV for < 4 unit buildings. 60-70% for > 5 unit buildings using commerical loans. Portfolio lenders will run the gambit. You just have to keep asking around to find terms that work for you. Best of luck!
Lender · Westlake Village · Member since 2018 · 2 posts · 0 votes
8y
Hi Benjamin, do you currently own your primary along with the investment property you mentioned above? If so, I know of a lender who will refinance it up to 75%LTV (based off of PP if less than 12mos ownership; otherwise they'll use appraised value after 12mos) Property doesn't even need to cash flow. Only needs to be tenant-occupied and not rural. They qualify you based on fico & equity in the property. Rates are about (7-8%) but they don't verify income/employment or require DSCR/DTI or reserves.
Rental Property Investor · Windham, ME · Member since 2017 · 60 posts · 22 votes
8y
Originally posted by @Account Closed:
Hi Benjamin, do you currently own your primary along with the investment property you mentioned above? If so, I know of a lender who will refinance it up to 75%LTV (based off of PP if less than 12mos ownership; otherwise they'll use appraised value after 12mos) Property doesn't even need to cash flow. Only needs to be tenant-occupied and not rural. They qualify you based on fico & equity in the property. Rates are about (7-8%) but they don't verify income/employment or require DSCR/DTI or reserves.
Yes. I’m living in a duplex which I own. I also own another duplex and a triplex as investment properties. My 2 duplexes are in Windham, Maine and my triplex is in Gorham, New Hampshire. All units are occupied.
Investor · Campton, NH · Member since 2010 · 284 posts · 142 votes
8y
Why don't you call Issac Davis, Vice pres for Northway Bank in NH, tell him I suggested you call - he has been doing 20 yr term, 5.2% with 20% down for a multi buyer of mine on acquisitions. Not too sure how this might equate to a cash-out refi, but definitely worth a call, the local banks can be better sometimes.
Why don't you call Issac Davis, Vice pres for Northway Bank in NH, tell him I suggested you call - he has been doing 20 yr term, 5.2% with 20% down for a multi buyer of mine on acquisitions. Not too sure how this might equate to a cash-out refi, but definitely worth a call, the local banks can be better sometimes.
Investor · Campton, NH · Member since 2010 · 284 posts · 142 votes
8y
@ Benjamin Dutil - You're welcome, I have his direct number if you want to connect on BP and please don't hesitate to reach out if I can offer any other help going forward...... :)
Rental Property Investor · Milford, NH · Member since 2017 · 62 posts · 30 votes
8y
@Benjamin Dutil try Bangor Savings Bank I met with them recently (they just bought out Granite Bank) they’re mid sized and seemed flexible and in the 75% LTV range
Rental Property Investor · Milford, NH · Member since 2017 · 62 posts · 30 votes
8y
@Benjamin Dutil Hey Ben, I met with someone at the Amherst, NH branch and he used to be with Granite Bank, but he was a very experienced commercial lender and fairly high up so you could definitely give him a call and see if he could help you himself or refer you to someone closer to you Michael Rasmussen (won't let me post his phone number but you could call the Amherst, NH branch and ask for him)