Should I keep calling around.

Question

Trying to refinance my first rental property here in Houston Texas. I have called 10 different local banks and credit unions and found a couple that are willing to work with me after a 6 month seasoning.

Is that the best option I have at this point without building more rapport? Or do I just keep calling around?

Thanks in advance.

Shahriar Khan · Answer

@Chris Kimsey  If property was purchased cash then gotta wait 6 months ish for seasoning . If it has loan then you can always sell one LLC to another LLC as you being responsible for the loan. Local credit union would provide best terms on loans as they are pushing 25 yrs amortization for investment properties .

For us, if we purchase all cash then we do cash in pocket --> loan at ARV --> cash to buy + equity --> buy at whatever price + keep equity --> refinance at ARV and this way no seasoning is needed and equity has been realized .

Andrew Postell · Answer

@Chris Kimsey thanks for posting!  Always great to hear from a fellow Texan.  Bigger Pockets also has a pretty active Texas forum if you ever want to post there on just "Texas" stuff.  Now, I would certainly encourage you to find an "investor friendly" lender.  There actually are some "what ifs" to your post here..."What if" you are getting a cash out loan....or "what if" you need a specific loan type...etc.   But in general, I'll provide you with some questions you can ask lenders to find out if they are "investor friendly" or not.  Here's the list:

Questions for Lenders

• When do you start using rental income to help me qualify? (the      answer needs to be immediately)
• When do you start using “After Repair Value” on my property? (also should be immediately)
• How long do you need me to be on title to refinance? (this is      important if you do need a short term loan to purchase then refinance out      - and the answer should be 1 day...very important that it is 1 day on      title is all that is needed to refinance - no seasoning!)
• What is my minimum down payment required? (if they only require 15%      down on a single family home that is usually a good sign that you are      working with a flexible lender)
• How many loans can I have with you?
• Can I change title to my LLC?
• Do you sell your mortgages?
• What is your loan minimum?
• Can you explain to me what your reserve requirements are?

*WHEW*  I hope that's not too much information but let us know if you have any other questions.  Thanks!

Agnes Greco · Answer

Check real estate clubs, there are always one or two lenders.  Look into IRA clubs for an alternative lender.   They are a group of investors with all different loan terms.

Chris Kimsey · Answer

@Andrew Postell great insight thank you.

Tarik Turner · Answer

Keep making the phone calls and try non traditional lenders they tend to have more flexible seasoning periods

Should I keep calling around.

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