Private Lending options
Hello BP Community,
Short summary: I own 3 single family apartments, free and clear (no mortgage). Have monthly 3 rental income.
For last 3 years were trying to get basic residential mortgage, but without success as do now work in particular country. All 3 Investment properties are long distance, in Europe. There are no commercial mortgage available, at least I can not find, either lenders and mortgage brokers I have been spoken to.
I have access to private lending instead, borrowing time is 1 year, maybe can expand to 3. I have read ton on books, listed BP and gather all necessary info, so ready to take action and scale up. As buying another single family with cash seems not fun for me, prefer to have small multifamily to expand.
My questions (scream for help) is:
Usually private lenders get paid fully back after project is finished - life fix&flip, BRRRR, refinance or simple sell of property. Due to local regulations I need to keep property for at least 5 years to be exempted from capital gain tax in case I decide to sell. Actually I am not planning to sell, but keep new property for maybe 10+ years until its double in value.
One option might be to refinance or ballon after x years, but I can't as bank will not issue mortgage to me. As I can not pay back my lender after 1 year lets say 500K that he will happily lend to me (can not save that much during 1 year :)
Please share how people overcome this without banks involvement.
Thank you in advance!
There are other lenders besides banks, No and low doc lenders aka dscr or non QM. Look into those for the refi portion.
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Thanks guys!
I wonder how can I structure deal to get monies paid back to private lender after 1-3 years (monthly instalments) and keep property under my name
As my private lenders ask for full payment after 1-3 years. No refi with bank.
Quote from @Julians Jasevics:
Thanks guys!
I wonder how can I structure deal to get monies paid back to private lender after 1-3 years (monthly instalments) and keep property under my name
As my private lenders ask for full payment after 1-3 years. No refi with bank.
It’s strange because a refi does pay them off 100%
Julian, it sounds like you need to talk to your lender again, I'm not going to take food off their plate but the statements you made are inaccurate, please go get everything clarified with them and if it's still jacked up .....I know a guy
Well, I spoke to various mortgage lenders, also bank where I have personal account and where all rental income comes in. They all refuse to issue me any loan until I have W2 job in the city. This is residential stuff, and no commercial lenders available. I know this is strange.
That's why asking for clarifications here, as also find it strange that have equity which I do not have access to because of no mortgage options. Without mortgage/private money can not scale up...