I will speak on my bank's timeline assuming you are using traditional financing. In my case, if I have all of the information I need (tax returns, PFS, property information, etc...) I turn these around in about 30 days - and have done quicker if my borrower is in a rush. I would need a copy of the executed lease showing that the DSCR covers at 1.2x or better. To determine if your properties would cover the DSCR, most commercial banks will calculate the properties' net income at 70% of the gross rental income (vacancy and expenses). If it's a newer property and significant renovations have been done, we will sometimes use 75% of gross rents. We do not require the property to be seasoned for a certain amount of time if that's your question. As long as the property is leased, we will reimburse/refinance 75% of the appraised value. If you do this right you should be recouping the majority of the cash you have invested. The 30-35 day period would be common for any commercial deal. That accounts for underwriting, waiting on the appraisal, getting the loan approved, collecting due diligence items, and have loan documents prepared for closing. In your case, if the properties are already renovated and leased and the bank is still making you wait to refinance, I would recommend searching for a different bank. but id suggests calling some local community banks and asking to speak to a commercial lender and ask those specific questions. I hope that helps.
There's a little secret that most people don't know. If you pay in cash many lenders will let you refinance very quickly. Months not years.
Fannie mae is changing this. New anti money laundering law. 6 month requirement now, I think it rolls out Feb 2020, but I'm not positive on the date. I learned it at my CE requirement for my license yesterday.
There's a little secret that most people don't know. If you pay in cash many lenders will let you refinance very quickly. Months not years.
Fannie mae is changing this. New anti money laundering law. 6 month requirement now, I think it rolls out Feb 2020, but I'm not positive on the date. I learned it at my CE requirement for my license yesterday.
Interesting, I haven't heard anything about this. 6 months is still pretty quick though and I imagine many private lenders and commercial banks will have ways around this.
@Account Closed sorry for any confusion here, Fannie Mae has had 6 month restrictions on doing "cash out" loans for a while now. I highlited some of them in an article I wrote for Bigger Pocket and even have a solution step in the 3rd section of the post. Feel free to read about it HERE