Long term hard money?

Question

So I am a newer Invester and don’t have a full time job. So refinancing my long term rentals is more of a challenge. I have one triplex that I successfully BRRRRed into long term hard money 30 year fixed loan. Interest is higher but it still cash flows fine and in two year when it is seasoned I can go conventional. I have a single family that I just finished renovating and planned to do the same thing but my hard money lender is no longer offering the program because of the uncertain market. (Ugh, Coronavirus)
does anyone know a lender who will do loans for a gall such as my self?

My credit score is great I just don’t have much of an income. And I’ve only been investing for a year so I don’t have the self employment for 2 year requirement either.

Help me find a creative solution.

My credit score is great I just don’t have much of an income. And I’ve only been investing for a year so I don’t have the self employment for 2 year requirement either.

Help me find a creative solution.

Breanne Weber · Answer

I could do 12 months of interest up front but the point would be to get some of my investment back out and be able to continue to invest. I check out the commercial route. thanks

Jaysen Medhurst · Answer

Have you looked into a commercial loan for either property, @Breanne Weber? The lender will be more interested in the profitability of the property. If they have great Debt Service Coverage Ratios (DSCR) and you had 6 months of reserves, you may find a lender willing to work with you. Start calling up all of your local banks and CUs.

Odie Ayaga · Answer

Unfortunately a lot of hard money lenders have gotten out of the long-term game or have pretty rough terms for their loans. Would you be able to come up with the first 12 interest payments at closing?

Joseph Cacciapaglia · Answer

This is a tough spot, and unfortunately quite a few people have found themselves in a similar situation. I haven't heard of a great solution yet. Most people I've talked to are either waiting and hoping, or they're bringing in a partner to help them qualify for a refi. Neither option is ideal, but I think it's the world we live in at the moment. Hopefully someone will chime in with a better solution.