All Forum Posts by: Ashley Cross

It depends on the type of loan you're refinancing to. It doesn't matter how the property was purchased. That's why getting the refinance terms pinned down is important when doing your analysis. 

This sounds like a pretty good option to me if the numbers work. It really depends on the percentage you are paying them. Hard money has higher interest rates and fees so it's best to avoid that if possible. One thing to think about is your seasoning period. Make sure your financing is worked out for the refinance. 

Congrats on everything! You have a lot of options and everyone presented great advice. I think you have a great opportunity to build your flooring business by hiring people to do the physical labor. You can also work with someone that you believe you can learn from so you can be paid while being mentored. All in all as long as you're doing something to move forward in your goal to becoming a full time real estate investor you're ahead of most people your age. 

It depends on the situation but you'll need to go for a blanket loan or commercial financing. 

Rates can definitely make a huge impact on your cashflow. I would bump up the interest rates to be in the mid 5s and inflate your closing cost just in case you have to pay additional for points. 

In a rising rate market such as the one we're experiencing you should of been locked. That's definitely a learning lesson. I'm glad they were able to explain it to you. 

We had the same issue with a loan we financed in Cleveland. Although, I don't believe it was a new roof and new electrical. It seems like you really have to get ahead of the appraisal. Arguing after the fact is an uphill battle. Next time go the the inspection or have a property manager there to show the updates. You may need to get another appraisal or if you have a realtor that does deals in the area maybe they have an appraisal that you can provide to show a peers opinion of a home in the area. Best of luck to you. 

Is this conventional or hard money? I've had a similar experience with hard money. Definitely no where close to this level. Also, origination charges which include the loan discount are different from the loan origination fee. 

Hi Daniel, 

Having the renter in place depends on the lender and the loan you're refinancing to. You should speak to a lender to get the terms pinned down. 

Getting the financing portion of everything down pact is very important. Get a pre-approval from the conventional lender so at least you know you'll be able to refinance and have an understanding of the terms. Also, hard money is expensive so make sure the ARV and renovation cost are iron tight.