Need small loans on a Single Family BRRRRs

[Jeff Neikrie]

Hey BP Community, I have two single family homes in Akron OH. One purchased in cash late October, rehab will be complete this week. The second SFH I closed on today with cash. This second one is more turn key; it needs some cosmetic work and should be rent ready in 1-2 weeks.

I live in NY state and have had a challenging time finding a loan for both these properties. First, because the loan will be small $80-$100K per property depending on the appraisals. Second, because I'm out of state. 

I've called about 10 local banks and credit unions in Akron and the surrounding area, none of them will work with a local investor. I'm working with a broker who has exhausted all of his resources and said I need to wait until I acquire a few more units and refinance them in a larger bundle loan. Another broker I found can make the refinance work, but at an 8% interest rate, 5, 7 or 10 year arm but with 4 points in fees. A final lender can get me 30 year fixed at prime rates, but this would require a 6 month seasoning period.

I'm looking for a commercial loan, so that I can pull my cash out asap and purchase my next property. Is it unrealistic to think I can find a commercial loan that would bundle these two assets in the 6.5-7% range with fees under 3 points? Also, I would like to refinance as soon as possible because there are a few comps in my neighborhood that are 3-6 months old.  The longer I wait, the more vulnerable the deal is if prices drop in the coming months and my comps weaken. 
If anyone has any resources or recommendations please let me know. 

Thank you!

Jeff

[Robin Simon]

I would recommend @Jack Mawer to help with this

I think you may be a bit unrealistic on the rate range 6.5%-7%, as the seasoning is just too small for the banks/lenders that are that low in rates, especially one that would bother with such a small deal. You'll likely need a BRRRR specialist DSCR lender most likely that is super flexible on short-seasoning and cash-outs - you will probably be in the 8s in rate and a couple of points though

[Miranda Holland]

The further below 100k property value, the harder it is to find a lender in the private lending industry. With that being said, 80k-100k in property value can be refinanced with some lenders if there's enough equity in the property. 

Most lenders require six months of seasoning before refinancing but some will do three months on some occasions.

I'll send you PM

[Alan Bostick]

Hey Jeff, you could look into The Applecreek Banking Co. ask for Mike Frost, they have many commercial loan packages for residential. Most branches are in Wayne county just south west of Akron, but they do lendinf in the Akron area. 

[Blair Wilson]

@Jeff Neikrie 

@Eric Goldman can do this for you. 

[Michael Wentzel]

@Jeff Neikrie

Hello Jeff. I'll send you a couple possibilities in PM. I've used both of them in the past for commercial real estate loans in the Akron area, but I haven't processed anything with them in the last 12 months.

Mike