Refinancing deals with high debt to income ratio

Refinancing deals with high debt to income ratio

Investor · Tampa · Member since 2018 · 289 posts · 107 votes

Seeking advise or recommendation on this particular situation.

My partner and I are currently rehabbing a property and have another one under contract. Mortgage company advised us not to purchase any more property until we refinance the property that we are rehabbing because my partner Debt to income ratio is too high. Now, I want to buy more properties but I can't do so in my name at the moment; we basically cannot use any hard money lenders for now. So I have the following questions:

  1. 1. We can use private money, but how do we pay back the private lenders ?
  2. 2. Recommendations for mortgage brokers who refinance properties in an LLC or from a personal name to an LLC (we buy in Memphis, TN)
  3. 3. Creative ways to fund & structure deals using the brrrr strategy or flip
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    Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Keleisha Carter This will be your biggest hurdle.  Most private/institutional lenders offering these types of commercial mortgages have a minimum requirement of $100,000 value or many have a $100,000 loan minimum. I'd recommend calling local banks in the area and asking to speak to a commercial loan officer.  

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    • Alex BekezaBusiness Member
      Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
      5y

      Hi @Keleisha Carter. There are some great 30 year fixed commercial options out there for 1-4 unit residential investors in your shoes. These have NO DTI requirements and don't report to credit. They allow LLC vesting and rather than your personal income they're focused on the properties cash flow (DSCR).

      What is the value of this property in Memphis?  Most of these lenders require a $100,000 minimum. 

    • Investor · New Zealand · Member since 2019 · 20 posts · 7 votes
      5y

      Alex,

      I have portfolio of four SFR, none of them are over 100 k but portfolio is about $320k. Do you think they could fund overseas investor with 7 years of seasoning LLC? Do they need any seasoning of LLC?

    • Investor · Tampa · Member since 2018 · 289 posts · 107 votes
      5y

      @Alex Bekeza hoping for it to be appraised for 97k within the next 2 months 

    • Alex BekezaBusiness Member
      Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
      5y

      @Keleisha Carter This will be your biggest hurdle.  Most private/institutional lenders offering these types of commercial mortgages have a minimum requirement of $100,000 value or many have a $100,000 loan minimum. I'd recommend calling local banks in the area and asking to speak to a commercial loan officer.  

    • Investor · Tampa · Member since 2018 · 289 posts · 107 votes
      5y

      @Alex Bekeza Thank you. Seems like I would have to do that

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