Lender that wraps repairs into loan on a rental property?

6 Replies

Would anyone here in the Nashville area recommend a lender / banker / mortgage broker that can wrap repairs into a rental? 

My partner is a high W-2 earner, so that won't be an issue.

Thanks!!

Not sure about conventional lenders, but there are plenty from a commercial standpoint. Civic, Franklin Synergy, Bank of TN. You can find options around 15-20% down of ARV (purchase plus repair cost).

If you are looking for conventional, another alternative is to buy it, finance repairs with credit card, personal loan, or partner and then refinance the property after 6 month seasoning.  

@Josh Braun Josh, that is truly excellent advice. Concise, too! Do you recommend any particular loan officer to work with at those banks?

All senior loan officers I've worked with at the mentioned banks are good.  Key thing is to have your ducks in a row, by having a formal proposal put together and give to them in your initial conversation. Make sure the proposal has market comps, rent roll, rehab budget, scope of work, who is going to do the rehab and an up to date balance sheet and income statement. If you have this type of formal proposal put together, you will be way ahead of everyone else and closer to sealing the deal.

I reconnected with F&M Bank and we are moving forward!

Working on the proposal now, thanks Josh.

Awesome. Report back and let us know how it works out for you!

It went well! Had a few hiccups in the rehab process (eviction, for one), but ended up renting the duplex higher than originally planned.

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