I need a specific mortgage product. Help.?

Question

I am an investor and will be purchasing a number of properties in the $30-60K range, and they will appraise for around $80K.

I will be buying the properties with cash, rehabbing them and then looking to do a cash out refi, and pull out my initial investment plus $10-15K in cash. Some issues that I have are listed below.

1) I need to go Stated Income
2) I own 10 properties already.
3) Credit score in the high 600s.
4) Looking for a loan with no "Seasoning" requirement.
5) Cash out refi.

I have contacted many lenders, and haven't been able to find anyone. The properties are in Cleveland, Detroit & Pittsburgh.

If you can help, or if you are interested in investments like this, please contact me.

Thanks,

Kevin

Answer 1

I work with a porfolio of real estate investors and lenders. We have a couple of lenders that will lend up to 80% of the appraised value stated, with on a non owner occupied with no seasoning, and cash out. I can only do loans in Michigan myself, but have a lender that does them in ohio as well. They are hard money lenders and the interest rates are higher. they also only offer 2 and 3 year fixed loans. If you are interested give me a call at 619-379-2063.

Answer 2

First of all, if you already own 10 properties, you should not be borrowing any nore money at all. If you want to not have to worry about seasoning issues, then you are going to need to set up a S corporation, and have all your properties listed under your corporation. At that point, you can borrow against the value of your assetts, without the burden of worrying about seasoning. It is a pretty simple thing to do, but with 10 properties already, it is really not understandable why you are still dealing with the banks. Are you using them as rental properties, or are you planning on selling them? I have a lot of experience with this, and I live in Columbus, Ohio. It is a slippery slope that you are on, because it is very easy to mess yourself up if you do not know what you are doing. If you need further assistance let me know.

Answer 3

You do have a big problem with the seasoning issues. Many lenders will look at this after 6 month seasoning.

Answer 4

You are playing w/snakes & headed for bankruptcy. Dave Ramsey, now an eminent fiscal responsibility guru went brok about 20 yrs ago doing pretty much what you are doing. Stop freaking borrowing money or you will probably end up broke. Don't believe me? get one of his books or call him up during his radio show & let him tell you his story. When he tells it, you can still hear the sadness in his voice, even though it was 2 decades ago & he is now a debt-free millionaire many times over.

Answer 5

so if you buy a property for 50 k and its worth 80, why not get a quick equity line then refi after a few months..