How hard is it to get a refinance loan?

Question

Kevin Woodard · Answer

Outside of adjusting the terms you’re offering. If you go the DSCR route you’re looking at the ability of the property to cash flow. This removes the DTI and personal factors that could hinder obtaining the loan.

Chris Seveney · Answer

@Sean Dezoysa

These are things to consider:

Ability to repay.

Debt to income

Property value

Interest rates

David M. · Answer

@Sean Dezoysa

This is confusing...  In the OP:  "...I'm not comfortable offering a 5 to 7 year balloon because I don't know how safe it is to have say 10 to 20 coming due within a short timeframe..."  So, what is the risk?  If you sold with owner financing, in 5-7 years you will be getting a ton of cash back.

Andrew Postell · Answer

@Sean Dezoysa finding a lender who will refinance you AFTER you have sold the property is really hard.  Remember, you don't own the asset anymore...so how can they change the lien on that property when you cannot give them permission to change the lien?  It's very difficult.  Once you get to a certainly level you can start to borrow against your notes - I have seen that before.  Or even sell your notes - if they are underwritten properly.  Maybe someone else has some different suggestions here but I am unaware of any loan products that can refinance a loan for you.  Now refinancing the loan for the OWNER - that is possible.  But for the note holder...I don't know how feasible that really is.

Sean Dezoysa · Answer

Hi @Andrew Postell, after I have sold it with owner financing.

Andrew Postell · Answer

@Sean Dezoysa you mentioned some things that I want to make sure we are clear on...

Are you needing a refinance loan on a property AFTER you have sold it with owner financing?

Or before?

Let us know that answer and that will help us give you the proper guidance.

Thanks!

How hard is it to get a refinance loan?

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