Website design By BotEap.comOne of the most frequently asked questions regarding repair and exchange real estate investment financing is how to refinance inexperienced and recently listed investment properties. This is especially true for those investors who have houses on the market that are not moving and that were bought with hard money.

Website design By BotEap.comReal estate investors in those situations want to refinance their homes and place them in 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.

Website design By BotEap.comI’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 …

Website design By BotEap.comWhy? Because they don’t want to deal with these loans, as they figure the only reason you’re trying to refinance is … you want to divest your equity … and the moment you get a buyer, you’ll pay off the new loan. . Lenders hate early repayments.

Website design By BotEap.comI 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.

Website design By BotEap.comThe number of lenders who will refinance at inexperienced installments and rates is considerable, perhaps 100-150 lenders. The number of lenders who will refinance at installments and inexperienced rates on a recently listed property is small. I think you will find that only about 5 will do this kind of deal. Not only will you pay off this type of loan at rate, but about 100% of the time, these offers will have prepayment penalties.

Website design By BotEap.comIf 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 took it out of the MLS … and to assure them that you will not be selling it soon.

Website design By BotEap.comIt’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.

Website design By BotEap.comAnother 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 to take a photo of your property and does the appraisal, make sure there is no “For Sale” sign in the front yard.

Website design By BotEap.comIf 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.

Website design By BotEap.comDeals 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]