I am just starting with investing in Memphis, and before I take the plunge and start making offers, I want to talk to some lenders about what my options are. I am a cash buyer right now, but will be looking to refinance the properties as I rehab and get them rented. I know there are banks with longer seasoning periods, minimum loan amounts, etc., etc. I don't want to end up with my money stuck in a deal unable to refinance because I didn't do my homework beforehand.
I do plan on starting to call banks and credit unions in Memphis, but wanted to check for some recommendation first. I'd love the name of some investor friendly lenders if anyone has any suggestions. I'm open to talking to banks, credit unions, or private money lenders. Thanks!
Aaron Chapman with security national mortgage company out of Phoenix az.
Nina Harrison with motto mortgage in Memphis Tn.
Those are just a few.
Aaron Chapman is the best in the business in my opinion working with investors!
I have also used Richard Collins from Renasant bank and had very quick and smooth experiences!
Our buyers have had great success with John Philips at Brighton Bank, Chuck Jackson at Guaranty, and Michael Wiegert at Renasant for 1-4 units!
Somewhat of a hijack.. but do these investors do loan-to-value type loans that would need for proper "BRRRR?"
Im very new, lived inMemphisall my life and im trying to learn and get set up to invest.
Hi @Danielle Wolter , I wanted to check in to see how you are moving forward in Memphis. What obstacles have you run into since your original post, and what are your next steps?
Hi @Gabe Viteri . I'm in the middle of a rehab on my first property and so far so good. I did make the mistake of not adding my rehab costs to the HUD when buying, so my cash out refinance will be limited to my purchase price unless I wait to 6 month seasoning period. Other than that, I've been very happy with my experience. I'm ready to buy my next property!
I was just having a conversation with @Jerry Skefos about this very issue. How do you add the renovation budget to the purchase price on the HUD? Is it as simple as placing the reno funds with your closing attorney?
If it Rehab Loan, then your bank should send Purchase price and Rehab money to the closing office. The closing office will keep the rehab money and you can draw from them when you completed the renovation.
I used Aaron Chapman for a BRRRR we just completed a couple months ago. Great, knowledgeable team and very responsive. I would use them again for 1-4 unit properties. Make sure to spend a little time talking to Aaron directly to let him know your strategy.
To add the rehab budget, we just let the closing company know to make sure to add it to the HUD. It was as easy as that. You send them the funds for purchase, closing fees, insurance if you will have them pay it, and rehab funds. After close, we received our rehab funds back.