Rental Property Investor · Providence, RI · Member since 2018 · 75 posts · 35 votes
I am looking to BRRRR a 3-family in Providence using private money. Does anyone know a local lender who will do less than 80% LTV on the refinance of an investment property?
Buy and Hold Investor · Cranston, RI · Member since 2013 · 1k+ posts · 1k+ votes
7y
@Nelson Taylor since I think you're also a RIREIG member, I believe there are several private lenders in the group who might be able to assist you. The last few meetings we've had several announce themselves to the group.
It all comes down to specifics, the specifics about the property and about the private lender. Some of them are looking to put a lot of money out there.
Usually getting someone to do less than 80% isn't the challenge though, since the lower LTV, the safer the loan. Did you mean that you're looking for more than 80% LTV (and thus, getting more of your equity out)?
If so, that would indeed be challenging, but I wouldn't rule it out, again it would depend on the specifics of the deal.
Rental Property Investor · Providence, RI · Member since 2018 · 75 posts · 35 votes
7y
Yes, more LTV. I know perhaps there are private lenders who might, but I'd be re0financing out of private $ and into a lower-rate conventional note. I guess I was wondering if there were any local credit unions for example that might do 90% LTV on a cash-out refi on an investment property.
Rental Property Investor · Providence, RI · Member since 2015 · 1k+ posts · 594 votes
7y
It all depends on the specific deal, relationship with the lender, previous track record, and amount of skin in the game. There have been instances with people I have done regular business with where I allowed them to put very little down.