Refinancing in 2021: Is It a Smart Choice For Real Estate Investors?

Sep 09, 2021

There’s no secret that the lending industry is doing great now. Rates go down, more and more people see the need in refinancing their properties.

Let’s have a closer look at some facts that show that the real estate industry remains stable and investing in properties and refinancing is a smart move in 2021:

1. Single-family rental occupancy rate is at 95%; its highest level since 1995;

2. The Southwest region has the highest mortgage delinquency rates averaging about 8%;

3. Open houses in many major Northeast markets are producing about ⅓ of the visitors they did 6-12 months ago, but the slowdown in people has not yet hit home prices;

4. Multifamily fix-and-flip and new construction are a growing part of many lenders’ businesses, with $5-10 million projects opening up significant growth opportunities as single-family inventory remains low.

When searching for your options, did you know what’s more profitable?

Refinancing is way easier and faster with hard money, than with a mortgage.

Another valuable thing for a real estate investor is time, and it takes only several days to get your hard money loan. It’s nothing compared to the weeks of waiting for a conventional loan.

You want to multiply your properties? Refinancing with hard money is a great strategy, that you can repeat several times, build your portfolio and still save money!

BorrowLabs can give you all of the above and much more! We are the hard money lender that can be trusted. The whole process is 100% digital  and it eliminates all the hassle with the preparation of your documents – we will take care of that and help you along the way.

Refinance with Borrowlabs under the following conditions:

1. For rental loans, rates begin at 3,75%. Property types include Single Family,

2-4 units, townhomes, PUD, and warrantable condos, so there’s plenty of variants for a wise choice;

2. The loan amount can start with $50k and go up to $50 million depending on the needs of a borrower;

3. According to this, our clients should remember about the term length that can be 5, 10, and 30 years, so it makes it realistic and easy to pay the loan back without a single worry;

4. The mid-score for the guarantor FICO should be not less than 680;

5. Loan-to-cost varies. If owned less than 3 months, it’s 80% of the total cost basis. If owned between 3 to 6 months, there’s an additional 5% haircut on the maximum eligible LTV;

6. We do full recourse loans only;

7. Max loan to as-is value when you Purchase/Rate Term Refinance - 80%. When it’s Cash Out Refinance – it’s 75%;

8. Our minimum debt service coverage ratio (DSCR) is 1.20x (Gross Rent/PITIA);

9. We also have some lease requirements. For the leased units: lower of in-place rent & market rent. For unleased units: 90% of market rent.

Tired of waiting for ages to get your loan? There’s no need to wait for so long when you’re with us! BorrowLabs is with you every step of the way, so hard money transactions go smoothly and as fast as possible.

No automated chatbots! Only personalized solutions when real operators are ready to help you with any part of the lending process.