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How to Refinance Your Investment Property

How to Refinance Your Investment Property

Refinancing an investment property such as a rental or a fix and flip has become a popular real estate investing strategy, especially when you are working with multiple properties.  See how some of our borrowers have used a cash-out refinance loan to help them further increase their ROI.

Do More with Cash Out

Many of our borrowers use their cash-out refinance loan to help them do more fix and flips. Once they have completed one home’s remodel and have it listed and ready to sell on the market, they can refinance it to not only lower their rate, but the cash out can be put towards the down payment of their next investment property.

By putting your cash out refi towards the purchase of another investment property, you can keep a steady flow of investment properties rolling.  This allows real estate investors to get the most out of their investment possible.

Other ways you can use your cash out is by putting it towards renovations of another property, so that it can be completed sooner, or with less money out of your pocket.

Extend Your Loan

Unlike Capital Fund 1, some private money lenders still have hidden tricks to increase your payments after requesting to extend your loan or even after just a few months.  While we do ask for an extension fee on loans that go past their maturity date, we never increase our interest only payments as long as the loan is in good standing (i.e. not in default). 

So, if you find yourself in a situation where the rate of your loan suddenly increases, or your current lender is making it difficult to extend, you should seek to refinance your loan to get out of that situation as well as increase your loan term.

Decrease Your Interest Rate

Just as we mentioned above, some lenders suddenly increase your interest rate on your private money loan simply because you are in need of an extension or its been an arbitrary amount of time before your loan’s maturity date, but you may also be eligible for a lower interest rate.  With a lower interest rate in place you’ll be able to leverage yourself into a better position, and just like with the cash-out refinance section, get more real estate investment properties.

Want to see if you qualify for a lower rate or just need cash out? Give one of our loan originators a call today!

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  • Phone: 480.889.6100
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