First Investment: Financing fell through, 2 weeks to close
Bp Community I need some help..
I am looking for any specific info/ advice for what I could do.
Long story long, I got a pre-approval for over 150k from my bank, then made offers looking for personal investment properties, got one accepted on a duplex in my hometown.
2-unit Multi-fam List price: 180k
Accepted bid: 145k
2 Unit-gross monthly rents: $2,100/ month (tenants pay utilities)
Both units are below market rent
100% Occupied, no work needed but if improved rents can be raised more and ARV would go up
Almost identical house right next door appraised this year at 205k
As stated I got a pre-approval and pre-qualification for 150k before even looking for a house.
I have enough for 20% down, and I have over 10k for emergency cash reserves.
I have a W-2 job, and over 735 credit score...
I have plenty of real estate experience, an agents license, a contractors license...
The bank had all this info up front. I explained everything about what I needed and the kind of lender I was looking for they said they were serious and handle investment properties all the time, they said everything would be good and of course then I couldn't get a straight answer from them on the status of my loan for weeks. Had to extend my closing date, now two weeks to close they called and said they can't lend to me because I don't have enough cash reserves.
I am looking for any info on how I can make this work, I called as many banks and credit unions in the state looking for someone who can help before settling with this one bank who really sold me that they can handle everything I was looking for and now I am worried I will not be able to extend closing again, and will lose the deal.
Do hard money lenders lend on situations like this?
I am confident in this opportunity and have worked hard to get it to this point, but I amlooking for any help on how I could close the deal.
Any advice is appreciated,
PM me if you want to talk more
Thanks
Ryan Luby I hope the lender you chose isn’t quicken loans. Is it a local bank? I don’t think a hard money lender here would really work. The cost of that money is going to be a lot and when you refinance you’ll have those closing costs again.
It looks like a good deal based on the numbers you’ve shown. Have you tried larger banks? I’ve had some success with US bank. I’d avoid chase personally. I would just call as many banks as you can.
Unfortunately if you have one that says yes typically minimal closing time is 30 days
Thanks @Caleb Heimsoth, not quicken.
It is more of a local bank, they seem like good people but I think they cared more about getting me to apply through them then actually being honest about the lending they do for this case unfortunately.
I called a lot of banks before making offers and before closing this particular bank but like you mentioned they all said 30-45 days to close and I don't think the seller will be as lenient to extend closing again, but I will keep looking and definitely try to extend again if needed.
Ryan...
How much do they want to see in your cash reserves and do they care where it comes from? This is probably the hangup. Send me a PM or text and we can talk through some things.
Figured I would post an update here, I really appreciate the feedback from everyone and I am extremely thankful for your care and interest in helping out.
I regrettably decided to let this house pass until I can get a few solid financing options in order before pursuing a personal investment property again. I definitely learned a lot, and again I appreciate all of the responses.
Best,
Ryan
Ask a hard money lender for the money and after you have the properties, refi with a bank. My 2 cents.
@Ryan Luby If I had a nickel for every time I ran into this problem......
I despise using conventional banks because of issues that you run into like this. send me a private message and I can see if my finance guy can help you out. He is located in CT and I just closed a deal with him on a property in New Britain.
How did you make out i would definitely try a Hard Money lender seems you have on the table to make the deal work.
There are buy/hold short term products through HMLs but you need to make sure it still makes sense having to close two loans.