Posted on: 14th Jul, 2009 09:11 pm
i am a real estate investor and borrowed private money from friends to purchase and rehab the property. i would like to refinance the property so that i can pay off the private money.
can any one shed light on how i can refinance the property and then pay off my friends' money?
thanks.
can any one shed light on how i can refinance the property and then pay off my friends' money?
thanks.
Hi tigerfamous,
You already have a private loan for the property which you have taken from your friends. You can apply for a second loan with any of the mortgage lenders. You will get a loan only if you have some equity in the property. Once you get the second loan, you can use it to pay off your friends. However, I don't think conventional lenders would be ready to refinance a private loan.
You already have a private loan for the property which you have taken from your friends. You can apply for a second loan with any of the mortgage lenders. You will get a loan only if you have some equity in the property. Once you get the second loan, you can use it to pay off your friends. However, I don't think conventional lenders would be ready to refinance a private loan.
Hi adonis,
I used the private money from my friends to purchase and rehab the property. However there is no lien recorded with the private money.
If I do refinancing on the property, the lenders will not see any mortgage or lien attached to the property. It does have a large equity on the property. In this case, can I apply for a second loan?
Thanks.
I used the private money from my friends to purchase and rehab the property. However there is no lien recorded with the private money.
If I do refinancing on the property, the lenders will not see any mortgage or lien attached to the property. It does have a large equity on the property. In this case, can I apply for a second loan?
Thanks.