All Forum Posts by: Drew Castleberry

Does anyone have a national lender they would recommend that can do an 80% LTV refinance on a SFR?

I just purchased 4 SFR over the past month with a private lender and I'm working on refinancing them to cash them out. I'm not happy with my current lender and am looking for another lender utilize instead.

Welcome! This is great market here in the Upstate that can be hard to find deals for some of us part time investors but being that your wife is a REA, you have a great head start on a lot of us! Personally I'd suggest SFR, I've had a hard time finding decent MFH, but either way, Greenville has a strong rental market right now.

Good luck!

@Tom S.

My lender I have been using does not require any seasoning. I have been utilizing a HML and refinancing immediately after closing. I am not asking about getting financing for an LLC. I am asking about lending to myself through an LLC and then refinancing to pay off the LLC and have the new refinanced mortgage in my name. This would allow me to refi at 80% LTV rather than 75% if I purchased cash.

I wouldn't say that there's a bubble in the Upstate. I'm only familiar with Greenville and the surrounding area. From what I've found is that prices are increasing merely due to supply and demand.

There is a ton of job growth (well paying jobs at that) in the area and along with the great attractions in the area (downtown, restaurants, etc) it's a very desireable area.

I'm not saying that there isn't a bubble developing, but the booming real estate market here isn't from speculation and bad loans. There are underlying economic conditions that support the strength in the market.

So I want to purchase a property with cash and then refinance immediately. If I do this I can only do a cash out refinance at 75% LTV. However, if I have a mortgage I can refinance at 80% LTV.

I don't have any private lenders to be able to do the initial purchase with otherwise I'd go that route. So I'm trying to figure out how I can issue a mortgage to myself (as a private lender) so I can keep the benefit of buying cash, and be able to refinance at the higher rate.

Is the only way to do this through an LLC?

Has anyone else ever done this?

Welcome! You're definitely in a good area as there are some deals in Charlotte, just have to be able to put the time in to find them. Good luck!

Be sure to leave you review on turnkey-reviews.com!

Here's the deal. I have a property I'm purchasing and I'm able to get it at a discount for roughly 78% LTV. I was originally going to use a HML and then refinance and roll the closing costs into the loan, so the total LTV would be at the 80% level that my lender utilizes.

However, if I pay cash, I will not be able to refinance with them, as it would be a cash out refinance and the LTV limit is only 75% so I wouldn't be able to do it.

Is it possibly to loan the money to myself through an LLC or my spouse as a private loan to be able to refinance at the 80% LTV? I've done a lot of research and so far the only thing I've been able to find is that I can't loan to myself directly. I'm trying to find a way to cut out the HML I'm utilizing.

I would imagine that a house that old has had several renovations done to it. Just make sure you have an inspection contingency (always have an inspection done). What are you currently using for a maintenance/capex reserves? I would definitely increase your %, especially if it hasn't ever had an overhaul (updated electrical, HVAC, roof, etc)  

You can find a lot of these out just by asking the owner prior to even paying for an inspection. If you find that a lot of these things haven't been updated in a long time from the inspection, you can use that as another bargaining chip to get the seller to reduce the amount since you're going to need to update them at some point in time.

 No I never did. Just use generic deposit slips as Brian mentioned.