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    2 Replies Latest reply on Jul 27, 2008 9:24 AM by gg_264

    Need a refi option for an investment property

    gg_264 Newbie

      We are real estate investors who are in need of a refi option. I recently quit my stressful corporate job to stay home with our child and manage our real estate properties (3). We purchased a rehab thru a hard money lender that has been a nightmare. They are not paying on their draws for one petty reason or another (we don't like the caulking on this beam, eventhough you passed inspection on draw 2 and 3
      we can't pay you for those as there was one thing we didn't like in Draw 1 and on and on).
      Needless to say, we have use all our personal funds to keep the project going, determined not to let this
      company strangle us into foreclosure (it is a 6 month term). Furthermore, the house needed to be complete in order to appraise to refi out of this horrible lender. The house is now worth about $140K and we are looking for 80% ltv, pulling out money to pay off things and replace our saving use for this project so I can remain out of work with our child. Problem is, by me not working, my husband appears debt heavy with all our other properties and our primary. I think that has also pulled his FICO down which presently sits at 647 (no late pays, no delinquents). We also have a seasoning issue as we have only owned the house for 2 months. Our attempts to refi out of this horrible lender has been disappointing. At this point we feel stuck. Does anyone have any refi options or advice to get out from under this lender before it is too late? I am amazed at investors that have 30-40 properties and keep getting loans with no debt to income issues. We need help.
        • Re: Need a refi option for an investment property
          LUCKIEST Guide
          Investment property, Welcome gg Where are you??

          It sounds like you need a Lawyer, Maybe a Lawyer with R E Background??

          The grass is always greener across the road " I am amazed at investors that have 30-40 properties and keep getting loans with no debt to income issues". TAKE CARE OF YOURSELF

          Have you developed a game plan?? Do you know about SCORE??

          SCORE is FREE and can help.

          Good luck, LUCKIEST
            • Re: Need a refi option for an investment property
              gg_264 Newbie
              I am located in Virginia. Game plan at this point is to continue to try to refi, try to sell the property (by word of mouth and a good friend who is a realtor as I understand that lenders do not like to refi properties that are listed for sales and they check MLS). As for a lawyer, we have a good RE lawyer that does all of our closings. Although I have ran this by him and he is outraged, I have not fully engaged him as I was hoping to refi out of this situations. Those options are dwindling. Also, as previously stated, we have used ALL of our savings to continue this project and the cost of a lawyer would just be one more weight. It will also
              take time for any lawyer to work thru this as I feel they are going to use the same stall tatics --time is one thing I don't have. I am truly interested in a refi option that would allow money out. This might also give me time to sell. I have had several friends who are investors use rehab companies with no problems. I seem to have stumbled on one that is predatory. If anyone knows of a refi option, please advise.