Real Estate

Tips for Refinancing Your Newly Listed, Unreasonable Investment Property

One of the most frequently asked questions regarding repair and exchange real estate investment financing is how to refinance recently listed investment properties with no season. This is especially true for those investors who have houses on the market that are not moving and that were bought with hard money.

Real estate investors in those situations want to refinance their homes into regular conventional financing to lower their cost of holding, as interest rates through conventional means are about half of what they spend on hard money.

I’ll be honest with you, these are some of the most difficult loans to close. What you are looking to do is refinance for cash a vacant rental property that has been listed in the MLS for the past year. Most lenders simply refuse to touch this type of deal …

Why? Because they don’t want to deal with these loans as they think the only reason you are trying to refinance is … you want to strip your equity … and the moment you get a buyer, you will pay off the new loan. . Lenders hate early repayments.

I read somewhere that a lender does not pay the costs of setting up and financing their loan at the three-month mark. So if you pay a lender in the first 90 days of the loan, the lender loses money. And lenders absolutely hate losing money.

The number of lenders who will refinance at installments and rates for no reason is considerable, perhaps 100-150 lenders. Few lenders will make installment and rate refinances for no reason on a recently listed property. I think you will find that only about 5 will do this kind of deal. Not only will you repay this type of loan at rate, but about 100% of the time, these offers will have prepayment penalties.

If you decide to keep the property as a rental, you may be fine with prepayment penalties, but you may also need to explain yourself to others! You will need a letter of explanation to the insurer stating why you removed it from the MLS … and to assure them that you will not be selling it soon.

It’s good to have your CPA write you a letter saying they advised you to take the property off the market because it will be better for your tax purposes to keep it as a long-term rental rather than flip it over. and take the hit from capital gains.

Another thing to remember is that these loans are difficult to make if the property was recently listed and almost impossible to do if the property is vacant. Therefore, make sure you have a tenant in the property. Another tip is to make sure that when the appraiser comes in to take a photo of your property and does the appraisal, make sure there is no “For Sale” sign in the front yard.

If you have such a sign, the insurer will see it in the picture and it will definitely be a “red flag” for them. It won’t hurt to have the sign taken away for a few days, but it will be a big problem to have it there.

Deals like this can be difficult, but not impossible. Learn more about financing your real estate investments in Financing your real estate investments [http://www.realtormarketinginfo.com/real-estate-investing/financing-real-estate-investments.html]

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