My partner and I have recently purchased a TK property with cash that we are having a difficult time getting refinanced (via delayed financing). The issue seems to be the purchase price being <$100k (it was $92k). Does anybody know of any investor friendly lenders in Indianapolis that will lend on a 30 year term (ideally 80% LTV) for rental properties? Any help greatly appreciated.
Rental Property Investor · Seattle, WA · Member since 2017 · 73 posts · 42 votes
6y
+1 for Aaron Chapman with SNMC, I've done a handful for my Indy properties. He's still doing refis on investment properties (75% LTV on SFH, 70% on 2-4 units I believe). Appraisals and loans are taking much longer in general, but he's got a great team and do all they can to move the process forward.
Rental Property Investor · Johnstown, CO · Member since 2015 · 119 posts · 78 votes
6y
Good luck and I'm also responding so I see the responses. I've also had a hard time finding refinancing for my investment property. I figured, the rates are insanely low so why not. Not so much the amount being an issue on my end (although I do where where you'd have more of an issue finding one in the sub-$100k category) rather, I've just not found any lenders wanting to re-fi investment properties. I was told that since Covid, they've really tightened up on lending to investment properties. About the best advice I can offer is also look into a commercial loan - but you may also run into issues because of the sub-$100k thing.
Real Estate Agent · Sacramento, CA · Member since 2019 · 18 posts · 14 votes
6y
Hi Ryan,
You might want to check in with Jared Shore at Finance of America or with someone at Visio lending. They're both REI friendly though I'm not sure what their current guidelines are since starting back up again. Let us know what you find out!
Rental Property Investor · Fishers, IN · Member since 2016 · 335 posts · 470 votes
6y
As @Alex McIvor mentioned, Visio is a good option. Similar appetite would be Corevest, Lima One, or Temple View. You won't get 80% LTV in this environment and rates will be higher. They are portfolio lenders who will do 30 year notes on a property in an LLC.
Rental Property Investor · Oakland, CA · Member since 2016 · 268 posts · 106 votes
6y
I've worked with Matt Tucker from Caliber and with Aaron Chapman from Security National before. Both should still be lending as far as I know and both do sub 100k loans. My guess is that 75% LTV will be the max you can get for an investment property though.
San Diego · Member since 2018 · 44 posts · 22 votes
6y
I worked with Bank of England on my first Indy BRRRR and used Delayed Financing. That was almost two years ago and rate was 4.75. Probably much lower now.
Any options with Private Money cashing you out?...if that is even a thing? Would pay a higher interest only payment for X amount of time (6 months???)...then refi with a conventional lender after 6 months for more options and much better rates. Just a thought. Do folks do this?
Rental Property Investor · Seattle, WA · Member since 2017 · 73 posts · 42 votes
6y
+1 for Aaron Chapman with SNMC, I've done a handful for my Indy properties. He's still doing refis on investment properties (75% LTV on SFH, 70% on 2-4 units I believe). Appraisals and loans are taking much longer in general, but he's got a great team and do all they can to move the process forward.
Thanks for all the help... chemical bank has proved to be a great option, close to closing with a 4ish% rate, 75% ltv. Plan to continue to use them and would highly recommend (assuming we close with no hiccups and LLC transfer goes as planned, i'll update with changes). Have to pay points but worth it for the rate. Visio rate was 8% and fees were astronomical for a sub 100k house, probably will get better once lenders ease up on investment properties.
+1 for Aaron Chapman with SNMC, I've done a handful for my Indy properties. He's still doing refis on investment properties (75% LTV on SFH, 70% on 2-4 units I believe). Appraisals and loans are taking much longer in general, but he's got a great team and do all they can to move the process forward.