Banks in Dallas Metroplex that Refinance Rental (BRRRR)

10 Replies

I recently acquired a property and in the repair process. Once I have a renter in place I’ll be looking to refinance. I’m looking for some recommendations of banks being used by investors that refinance on the appraisal and offer a cash out.

@Bryan Allen . My experience in Dallas has been that the property must be seasoned for either 6 months or 1 yr with some banks. I can give you these referrals.

If anyone else has contacts with fewer than 6 months, I’d be eager to hear about them as well.

@Lucia Rushton @Bryan Allen Local banks in Dallas are likely to require 6 months. However, there are commercial programs from out of state that lend to DFW/Texas that will only require 90 days to go up to 75% LTV on 1-4 unit BRRRRs.

@Bryan Allen thanks for posting!  There are lots of Lender in the DFW area for sure.  Would you mind me asking how you acquired your property?  Meaning, did you buy with cash or with a loan?  That will help me point you in the right direction.  

Oh, and @Lucia Rushton there are certainly methods of having NO SEASONING at all, but you will have to setup your purchase properly depending on what loan type you can get qualified for and HOW you acquired your property.  I wrote a  post on how to structure buying with cash and using Fannie/Freddie  HERE  Just for the sake of time I haven't written one for every type but would certainly be willing to answer any questions on other scenarios.  Hope all of this makes sense.  Thanks!

@Bryan Allen so if you were to get a cash out loan....most limits are 75%.  By the time you roll in the closing costs for a refinance, you might only be talking about a few bucks back to you.  Generally speaking most "cash out" loans are too limiting.  Now, there is a method to setup the purchase of the property in the beginning so you can get 85% but you would have to do it at closing.  Meaning, you can't go back and fix it now.  I know, I know....it stinks to learn about this NOW....but just be thankful that we at least have a forum like this so you can learn about it on the next one....essentially we file a 2nd lien AT CLOSING for your out of pocket costs.  Then you refinance your first lien (Hard Money) with your 2nd lien (from yourself) and get one loan.  I summarizing it but this is how most people use conventional Fannie/Freddie loans to recoup most of their out of pocket costs back.  

Create Lasting Wealth Through Real Estate

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

Start here