I am finding many of my clients coming to me after deciding to get off the fence on their investment property and wanting to refinance their loan instead of selling the property as initially planned.
The problem lies in the following. The lender doesn’t want to “buy” your property, by that I mean the lender doesn’t want to refinance a loan for you on a property you couldn’t sell. The reason is that many times an investor will be dissapointed that they are losing money on an investment property that they will refinance it, take cash out, and walk away.
Because of this many lenders will not finance a property that has been recently listed for sale. The only way lenders typically know a property has been listed is to check the local MLS listings. They will also know it if the appraiser goes to the property and sees a big “For Sale By Owner” sign.
The few lenders that will do a loan for you will require you to have at least a one year prepayment penalty.
If you don’t want these restrictions try to avoid putting your property in the local MLS and remove all “FSBO” signage before applying for your refinance loan.
Until next time
Real Estate Investor Loan 