BRRRR Refinance at 75% LTV?

Question

Hi all! I am working on a BRRRR deal in NY and the last piece to fit the puzzle is making sure I have the refinance approved. So far all lenders are saying that post covid they are only doing up to 70% LTV. Does anyone have a recommendation for a lender that will do 75%?

Beverly Gutman · Answer

@Andrew Postell Thanks Andrew! Yes, that's what I'm doing. I also read your post about different questions to ask lenders. Great post with applicable action! I hope to post when I get an approval.

Andrew Postell · Answer

@Beverly Gutman most of the Hard Money Lenders I know are lending at 75% LTV.  Now, some might say something like "If this is your first deal ever, we will limit you to 70% LTV".  So there might be something like happening but we want to target lenders that write 75% of the ARV.  Network with some real estate investors in your area for best results.  Seek out meetup.com.  Lean on facebook groups.  Keep searching.  I think you can find this in your BUY step.

David Windsor · Answer

@Beverly Gutman, Indeed!

Beverly Gutman · Answer

I am still at the BUY step but wanting to be prepared for the REFINANCE part.

Andrew Postell · Answer

@Beverly Gutman what step are you seeing this limit on?  Are you on the BUY step?  Or the REFINANCE step?

Alex Bekeza · Answer

@Beverly Gutman I just sent you a DM.  A great place people can start is under the hard money lenders tab under the net work tab here on BP.  Many of those lenders also offer 30 year fixed commercial rental loans alongside their actual hard money programs.

Beverly Gutman · Answer

@Alex Bekeza You're very possibly right as it is for a 2 family. Where would I look to find not fannie/freddie lenders? Please forgive my ignorance, this is the first deal I'm working on.

Alex Bekeza · Answer

@Beverly Gutman Perhaps this is a multi unit and you're talking to fannie/freddie lenders?  There are definitely commercial, 30 year fixed options right now that would allow 75% cash out.  Rates in the 4s for the most part. No DTI, all DSCR based.