Quick Question About A BARRR - Refinancing/ Portfolio Loans etc.

9 Replies

Hello All - 

I have a some questions and looking for some expertise help... 

In the recent months I have purchased 4 different properties... 

All properties Cash Flow, and as you can imagine all properties were bought pretty low. ($40k, $20k, $25k, and $60k) Equity should be  25%-50% including the purchase price of these properties. Meaning the duplex I got for $40k, its identical neighbor sold for $79k, 2 weeks ago. 

Now here are my questions:

I am looking around a few months in and I am finding some trouble and that there is either a minimum as you know to cash-out refinance these properties.

I was thinking of grouping them all together and doing a portfolio cash-out refinance... Is there such a thing?

What would be the best way to refinance out to get all my cash back out of these properties? 

One last thing - I am in SoCal and the properties are in Memphis, TN

Thank you... 

first you might find it difficult to do ancSh our refi on rental non owner occupied homes. If you do find a lender you will then possibly have a issue with appraised valued in lower value areas. Some lenders won’t do this type of financing i in vestment homes. Good luck!!! Keep us posted!!! 

Hi, @Anthony White .

Congratulations on building a portfolio of properties!  

There are several local community banks who would enjoy hearing your story and could possibly refi all the properties for you in a single loan.

Send me a private message and I'll be happy to make some introductions for you.

@Anthony White I think a portfolio loan with a local bank would probably be a good idea. But if you have a hard time getting a portfolio loan then you might try getting a business loan or a business line of credit that is secured by the equity of those properties. I was able to do this with a small bank in Arizona to get 65% of the money back that my properties in Indianapolis, Indiana appraised for.

@Anthony White my first recommendation was to reach out to some local investors in the "Tennessee" forum here on Bigger Pockets but I see you already have one that has responded.  Feel free to still post in that forum. 

You are right that not very many banks will lend at that loan level.  Banks actually lose money lending on amounts that size.  But they are out there.  Keep in mind that a "conforming, conventional" loan will lend at 75% of the home's value.  So use that as a measuring standard when speaking with a lender that is willing to lend that low.  Good luck!

@Anthony White From my experiences, most portfolio lenders want your portfolio value to be over 500k before they will discuss with you..

That's why a lot of guys will get their 10 loans(FNMA limit) and then go look for a portfolio loan to pay the 10 off.. Then start the process over again..

Most lenders have a 50k smallest loan cap. e.g.- they won't lend less than 50k. So your values need to be 65k~. If you look hard enough you will find lenders who will do 40k, and then occasionally you will find lenders who will do less.. Just going to take time to find them!

@Anthony White I have found that 53rd bank will do mortgages below $50k in total value using a traditional 80% LTV.

Originally posted by @Erik Perks :

@Anthony White I have found that 53rd bank will do mortgages below $50k in total value using a traditional 80% LTV.

 Where are they located?

They are a National larger bank. https://www.53.com

I know illinois and Indiana for sure but they are bigger than that.

Quicken wouldn’t go below the $90s.

Members of Illinois REIA can go to Scott W and his crowd funded lending platform. Any questions my contact info is below.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here