Cashout Refinance lenders/Banks

[Ryan Sykes]

Greetings All!

My brother and I are 2 weeks away from completely renovating our first rental property in Petersburg, Virginia. What’s even better is that we used our own money so we don’t owe anyone. We suspect from the comps the After Repair Value will be between 60k - 70k and rent between $750-$800 per month.

I am anticipating us being turned down by the banks because of our low personal credit scores, however, i am not giving up hope of being able to refinance our first rental to get another property. Any advice of how we should go about using our property as leverage to get loan despite our credit score/history?

Things to know: my brother own!90% and I own 10% of the company (LLC). Both of our names is on the business bank Account and our total investment was 52k. We bought the property December 2018 and started renovating mid January 2019 (it was down to the studs).

[Shaun Weekes]

Originally posted by @Ryan Sykes:

Greetings All!

My brother and I are 2 weeks away from completely renovating our first rental property in Petersburg, Virginia. What’s even better is that we used our own money so we don’t owe anyone. We suspect from the comps the After Repair Value will be between 60k - 70k and rent between $750-$800 per month.

I am anticipating us being turned down by the banks because of our low personal credit scores, however, i am not giving up hope of being able to refinance our first rental to get another property. Any advice of how we should go about using our property as leverage to get loan despite our credit score/history?

Things to know: my brother own!90% and I own 10% of the company (LLC). Both of our names is on the business bank Account and our total investment was 52k. We bought the property December 2018 and started renovating mid January 2019 (it was down to the studs).

Congrats on getting this done and funded on your own.  Your credit scores are going to be very important if you want to scale your business.  I would now concentrate on paying down or off whatever it is that's affecting you guys credit score wise.  When this is all cleaned up wait 45 to 90 days before applying for loans.  During the first 45 days make sure the paid items or items that have been paid down have reflected on all 3 credit bureaus before applying for loans.

I hope this helps and have a good one.