BRRRR - Buy, Rehab, Rent, Refinance, Repeat

User Stats

1
Posts
2
Votes
Howard VanBuren
2
Votes |
1
Posts

Refi on investment property

Howard VanBuren
Posted Nov 17 2022, 17:27

Looking for a good company to refinance one of my investment properties in the Philly area. This will be my first time doing a refi as a new investor. Any companies or suggestions are welcome. Thanks in advance.

User Stats

338
Posts
370
Votes
Jack Mawer
  • Lender
370
Votes |
338
Posts
Jack Mawer
  • Lender
Replied Nov 18 2022, 07:14

Are you clear on what type of financing you are looking to obtain? If you are looking to refinance a rental property and want a simple process, I would highly recommend using a DSCR (Debt Service Coverage Ratio) loan. This will solely look at your FICO score as well as the property cash flow (asset-based lending) and allow you to scale your portfolio as your DTI will not take a hit.

User Stats

6,471
Posts
4,985
Votes
Andrew Postell#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Lender
  • Fort Worth, TX
4,985
Votes |
6,471
Posts
Andrew Postell#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Lender
  • Fort Worth, TX
Replied Nov 18 2022, 15:15

@Howard VanBuren thanks for posting. You're on the right track here. We need some good local people to weigh in here on who's a good lender in your area.

Here's my 3 suggestions:

  1. Visit your local REI groups. There are many groups that meet across the country. Some post here on the Bigger Pockets Marketplace. Many post on meetup.com. Networking is always a great practice and you never know who you might meet there and what good information they have to share. Would certainly recommend visiting if one is close to you.
  2. You can also visit real estate investing groups virtually.  Facebook is a good example of this.  If you search "Philadelphia Real Estate Investor" or something to that effect there will be several pages that come up with THOUSANDS of members.  Join a few and get plugged in.
  3. Calling - and then there's this option. Which is what I have had to do many times...it stinks. Try to other two first.

Hope this helps!

Lender Texas (#392627)

User Stats

152
Posts
66
Votes
Rob Lawrence
  • Real Estate Agent
  • West Chester, PA
66
Votes |
152
Posts
Rob Lawrence
  • Real Estate Agent
  • West Chester, PA
Replied Nov 21 2022, 05:44

Are you needing a commercial loan or one in your personal name?

User Stats

754
Posts
536
Votes
Jonathan Taylor
  • Lender
  • Los Angeles, CA
536
Votes |
754
Posts
Jonathan Taylor
  • Lender
  • Los Angeles, CA
Replied Nov 21 2022, 15:48

@Howard VanBuren DSCR loan ( as @Jack Mawer mentioned) would great option if you do not have enough verifiable personal income. Basically, these loans use the rents you receive on the property and divide them by the new loan PITI to receive a ratio. Simple math would be a PITI of 1,000 and rents of 1,500. That would be a debt service cover ratio of 1.5. Basically, this property cash flows. FICO, experience, and LTV are also factors but this is the basis of the loan. No need for tax returns, Verification of Employment, or income. I have been through this loan as an investor myself and originate these loans all the time.

DM with questions as Im happy to help.

Lender CA (#02115256) and NMLS (#1993906)

User Stats

4,538
Posts
2,515
Votes
Stephanie P.#2 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Washington, DC Mortgage Lender/Broker
2,515
Votes |
4,538
Posts
Stephanie P.#2 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Washington, DC Mortgage Lender/Broker
Replied Nov 21 2022, 17:09
Quote from @Howard VanBuren:

Looking for a good company to refinance one of my investment properties in the Philly area. This will be my first time doing a refi as a new investor. Any companies or suggestions are welcome. Thanks in advance.


If you can go with conventional financing meaning you can qualify using a fully documented loan, that's the best way to go because it's least expensive. The next option would be a DSCR loan. It's based on the borrower's credit and the property's income and that's it. They're more expensive, but much easier to qualify. Go conventional if you can and if not, go DSCR.

Stephanie