FIRST DEAL + hard money loan into a refinance

9 Replies

Hey, all!

First post here on BP! Been listening to the podcast now for a while.

I have some questions about financing. 

(some backstory: my wife and I have a chapter 7 bankruptcy on our credit report from Dec. 2018 (discharge date)) 

We cannot get traditional financing due to BK. 

The deal:

We found a house that we'd like to BRRRR -

Purchase: $35,000

Rehab: $35-40,000

All in: 70-75k

Rent $875+ 

We've gotten several pre-approval for HML at 90% Purchase and 100% rehab, but my fear (after talking to a traditional lender) is getting stuck with HML without a way to refi out of it.

Does anyone here have any loan products that could bridge over into a long term rental loan?

What would you do in this situation? 

I'm dying to get our first deal done and move forward.

Thanks! 

They have non qm loans with 1 day seasoning out of BK. LTV is capped at 80% LTV so this might work for you. Rates are not the nicest but it will get you out of hard money.

You could also ask you hard money guy if they will do a DSCR loan, some lender don't care about BK on those.

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What's the estimated ARV? What are the comps selling for?

Lets dive into numbers before we get crazy. 

@Tim Johnson

Great Recommendation I am a wholesale account executive for Excelerate Capital and I can try and help on this deal. Let me know if you are approved with us if not I can send you a broker package. Would love to help.