All Forum Posts by: Miranda Holland

Could someone clarify how a cash out refinance would work after new construction. I own the land with a mortgage (owe about 225k out of 287k) and am living in one of these units. I have about $150k cash on hand as well as I am planning to get a construction loan to cover the remaining cost of a duplex. My question is after the construction is complete, am I able to do a cash out refinance on the whole property to pay off the construction loan in order to build more units? If so does the cash out reset the loan to the original amount or does it increase it to include the value of the new unit (i.e. original loan was 300k and after cash out it becomes 550k?) thank you.

Hi James,

After completing your new construction, you can indeed do a cash-out refinance on the whole property if there's enough equity in the ARV. This refinance would potentially allow you to pay off the construction loan and potentially access additional funds to build more units.

The new loan amount after the cash-out refinance will be based on the current appraised value of the entire property, including the new construction. For example, if your original loan was $287k, and the new appraised value of the property is significantly higher due to the completed duplex, the new loan could increase to reflect that higher value, allowing you to access more capital.

Keep in mind that the exact amount you can cash out will depend on the lender's guidelines and the loan-to-value (LTV) ratio they are willing to offer. Make sure you work with a lender who understands cash-out refinancing to get the best terms.

Feel free to reach out if you have any more questions or need further clarification.

1 Vote

Quote from @James S.:

i was hoping to get advice on the best way to fund the next part of my real estate journey. I house hacked a property that has 9.4 acres, and has a duplex and single family home on the property. I current get $1,000/month for the single and based off local market expect to get $1,500/month for the other part of duplex (mortgage is $2,080/month after putting 20% down). I am working with the city for approval and have a cost estimate from someone I know of 250k to build another duplex on the property and eventually multiple duplex. With that in mind I have about $140k in cash at the moment and was hoping for advice on the best way to finance the rest/recommendations on who to fund the remaining amount through. I plan to cash out and refinance after completing the unit, and using the remaining funds to construct additional units. Is this a good plan? And advice is appreciated.

Hi James,
If you no longer reside on the property, it might qualify for a ground-up construction private loan for non- owner occupied properties.
These loans can give you money for the purchase, or credit for the purchase when you already own the property. And they also provide up to 100% of construction costs.

0 Votes

Quote from @Jesse Imes:

Hi!

Currently looking for a lender that will do a portfolio commercial refinance on a group of STRs. They are all 2 units or single family homes. Income is amazing. Looking for income based approach to get the best value.

Let me know!

Thanks!

Jesse

Hi Jesse,

Your STR portfolio sounds impressive!

Have you faced any specific challenges in finding funding for this deal? There are strategies and lenders that can help overcome those hurdles.

I sent you a connection request

0 Votes

Quote from @Devin Peterson:

Does anyone have a good lender/contact for a commercially zoned tourism home?

Purchased for 180k over 1.5 years ago

Reno 280,000k

ARV 520K

Experience through the roof

FICO 700+

The trick here is the prop card/zoning - does anyone have a product for this? Please DM me if so.

I’ve encountered similar situations with unique zoning challenges. For a commercially zoned tourism home, it might be a bit tricky, but definitely not impossible. Lenders who understand and specialize in such properties can be more flexible with their criteria.

One approach is to ensure you provide comprehensive documentation on the property's potential and zoning specifics. Highlighting your extensive experience and strong FICO score will also be beneficial.

0 Votes

Hartford, Connecticut

Quote from @Rob Austin:

I'm under contract for a triplex in Boonville Indiana, the purchase price is $192,000, the arv is $280,000 and will need $20,000 in renovations.

Looking for a lender who can do "rural" fix and flip (hold for air bnb or long term). I don't feel like it's rural, but I'm being told that it is because the comps are 10 miles away.

Needs to be 90% LTV.

Any ideas?

I’ve encountered similar situations where comps were further away, and it can indeed be challenging to find lenders who are comfortable with that. When working with rural properties, some lenders might still consider the deal if the comps are strong, even if they're a bit farther away.

Sometimes it's beneficial to gather as much data as possible about the area, including any local developments or attractions that might support the ARV.

If you have a local lender or a smaller bank that understands the area, they might be more flexible with rural properties.

1 Vote

Evansville, Indiana

Quote from @James McGovern:

Are there Hard Money Lenders that still do Gap Loans with simple underwriting and low origination fees? Why has this type of product disappeared?

Hi James,

Yes, there are still hard money lenders that offer gap loans with straightforward underwriting and competitive origination fees, but they are becoming harder to find. The market has shifted in recent years, and many lenders have tightened their criteria due to increased risk and regulatory changes.

However, I work with a network of private lenders who unsecured funding in the form of signature loans that borrowers often use for gap funding. If you're interested, feel free to connect with me.

1 Vote

Norwalk, Connecticut

Quote from @Mike Moran:

Hi there - I own and manage 120 units of several different varieties (SFH, Duplex, Quadplex, Multi). At the end of 2025, I will be refinancing two of my portfolios (roughly 80 of the units) and extending the amortization as rates are up. That said, I have an 18-unit that would be a great addition but I'd like to bridge it until the larger refinance and then include it as part of said refinance. Purchase price of $2-2.1M, willing to put $5-600k down. Looking for guidance on either private lenders, private investors, etc that may be interested. Thanks!

Hi Mike,

I'd love to help. I’ve sent you a connection request.

0 Votes

Upstate New York, New York

Quote from @Alberto Vargas:

Have a property in TX (Dallas county), going through rehab, likely to be ready in 3 weeks. Hard Money total note is $187k, arv: $275k -$285k. Trying to keep it as long term rental, I'm getting 5/1 arm starting at 7.4, also 75% interest only 6.8%.. what would be the best deal to get out of the HM?

Most investors I work with do either a regular refi DSCR loan or, take up to 75% or 80% of equity out of the home through a cash-out refi.

0 Votes

Quote from @Claudio Garcia Zuniga:

Me and my business partner found a duplex in Austin and we are having trouble securing the downpayment of 60K. Looking for options and we are hoping BP can help. We both completed our 1st fix and flip this July. Thank you!

Hi Claudio,

There are lending options specifically designed to help with down payments such as gap funding and other unsecured lending options.

Check your DM

0 Votes

Austin, Texas

All Forum Posts by: Miranda Holland

Miranda Holland has started 2 posts and replied 172 times.

Post: Lender who will lend to a Canadian investing in the USA

Post: Cash out refinance after new construction

Post: Best way to find new construction

Post: Commercial Lending for Short Term Rentals

Post: Commercial Refi Bridge Loan

Post: Rural fix and flip, comps are 10 miles away

Post: Are there Hard Money Lenders that still do Gap Loans?

Post: 15-18 month bridge

Post: Options to exit hard money

Post: Looking for private lending options. Even 2nd position if possible. Thanks!