All Forum Posts by: Ryan O'Mara

@Account Closed - Just in case you were thinking of doing otherwise, make sure you are recorded on title for this purchase.  If you don't, then there will be no seasoning on your ownership and if you go to refinance in the future, the lender will treat it as a new purchase.

@Anette Lyons-evans - There are many options for cash out refi on a 2 unit titled in an LLC. Every lender will have different requirements such as: dscr, seasoning, location, FICO, etc...

Loans are unusually 30 year am with fixed rates for 5, 7, or even 30 years.  Yes you can get a 30 year fixed rate.  I work with several lenders who offer this.  It's more expensive, but you can do it.

@John Acheson - Factors that ALL commercial lenders will look at in regards to the borrower are FICO and liquidity.  Do you have the cash to do the deal and do you meet their FICO requirements.  Beyond that, lenders will have things specific to that lender.  Have you ever filed BK, had mortgage lates, foreclosures?  If so, how long ago?  Do you own your own home?  Do you live in the same state as the property?  What other RE do you own?  Do you have experience owning this type of property?  Etc...

Then they look at the property. It needs to meet their DSCR requirement. 1.25 is pretty standard as a minimum. Sometimes lenders will require higher. Like a Fannie Mae MF may increase the DSCR for smaller metro areas.

And then there's just a subjectivity factor.  You and the property may meet all the requirements, but the underwriter just doesn't like the deal.  Maybe they don't like the location, the neighborhood, the roof on the property....whatever.

So it's always good to have a Plan B lender or someone helping you who can take your deal somewhere else to keep it from be derailed.

@Jared W Smith - there are rehab/bridge lenders who will lend on pure commercial properties.  And since this is only 5 units, then there should be many lenders willing to consider.  PM me if you need assistance.

@Jason D. and @Joe Bruck - I really should have qualified my previous statement more:  Local banks and credit unions may well provide this.  I don't work with banks for loans under $1mm for the simple reason that if a borrower is bankable with a deal that small, why would they need me to broker the loan?  If you and your deal are bankable, go with the bank loan as long as you don't mind jumping through all the hoops.

My lenders are not banks and provide financing for deals and borrowers that are not bankable. None of the lenders I work with would do 80%LTV cash out. But they are more flexible in many other ways.

@Kole Kingslien - make sure you or your corporate entity are on the title, otherwise you will have no seasoning and when you go to refinance, the lender will treat it as a purchase.  

@Joe Bruck - I work with a lot of lenders and I know of none that go up to 80% LTV. 75% is the highest for cash out refi. And that depends on your FICO, seasoning, and DSCR.

@Mike Cox - You could refi them all under one blanket loan if you want.  As Travis indicated, you need to decide for yourself what you want to do.  

PM me if you need assistance.

@Kelly McKenzie - you can certainly do a cash out refi on any non-owner occupied property. That includes 1-4 unit properties. Every lender will have different requirements as to seasoning, FICO, DSCR, etc...

The most you would get is 75%LTV. PM me if you need assistance.

@Carlos Perez - I work with a lot of lenders and I don't know any that would do more than 75% at this time.  You might find a local bank that will do this.