Investment real estate loans (Chicago, Peoria: sale, rent, refinance)

[wgm007]

Hello everyone,

I just purchased a duplex that I rehabbed and am now looking to refinance it and pull out everything that I put into it which is still only about 50% LTV. If you can help me with this then please let me know.

Thank you,

[chet everett]

Not going to be easy.

The lenders that used to make that sort of cash out refi way too easy have mostly IMPLODED. Does not matter if you only want to take out a small portion of your locked in equity these sorts of deals just are not on the radar of any of the truly easy to deal with companies.

I can all but guarantee that if you do fill out info for a web site claiming to be 'easy' they will deluge you with junk mail, electronic spam, telemarketing and maybe even some goon in an ill fitting suit all intent on getting you on the hook with huge "application fees" and no real lead on a loan.

If you did not purchase the place for a long term live-in & rent out situation I would suggest selling if you need the money. I just don't see how this segment is going to ever come back to where it was a bit ago. There are people that ARE long term "live in landlords" and they might be just what you need, but lenders got burned too badly in the kinds of deals that were thisclose to fraud and know they are either BROKE or "once burned twice shy"...

[linicx]

Originally Posted by wgm007

Hello everyone,

I just purchased a duplex that I rehabbed and am now looking to refinance it and pull out everything that I put into it which is still only about 50% LTV. If you can help me with this then please let me know.

Thank you,

Illinois has 105 counties. Where is the duplex located? Is it currently your primary residence?

[chet everett]

I doubt it'll matter. The appetite that lenders have for cash out refi is vanishingly small, regardless of the locale. The more rural areas that did not boom probably lagged because they had poor job growth and NOW those areas COULD be in even more peril. There are jobs in Illinois DIRECTLY tied to automotive and heavy equipment industries of the kind classically associated with "stuff that is Made in America" (to counter those who lament the whole "this country doesn't make anything anymore" types) and there are also the fair less manual labor intensive (but far more high skill) jobs associated with designing and financing this stuff. If Deere or Caterpillar or Chrysler or others close plants it won't matter that there "was never a bubble" downstate there WILL BE a bust!

Lenders are painfully aware of this and want to do everything they can to make sure they DO NOT LET ANYONE TAKE SKIN OUT OF THE GAME!

I'll be a long time before that changes.

[linicx]

Rural banks where I live are solvent, fiscally conservative, did not play the markets, did not make 100% laons, did not take risky borrowers, do not write 30-year fixed, nor are they cash poor. A cash out refi is not an impossible deal if: [A] It is the right house, [b] the house is in the right location, and [C] the refi is matched iwth the right lender.

It is not an impossible deal, but it iwll probably take a toll in terms of your time and hard work that is needed to find the right partner. IF you want to cash out quickly, you might consider selling it at a reduced price. As the market has not bottomed out yet, a quick sale might be the least pain and the most gain in the end.

It all boils down to one question. How long are you willing to sit with your money tied up in a house you do not plan to occupy?

[chet everett]

I have never done business in Peoria so I will defer to your expertise in that area, but I cannot fathom how any bank that supposedly WAS conservative when others were reckless would now be in a position to be less so...

Further the simple rating of the banks that came up when I googled 'Peoria Banks' are not overly impressive:

Bankrate.com Safe & Sound (tm) Bank, Thrift and Credit Unions rating feature

Bankrate.com Safe & Sound (tm) Bank, Thrift and Credit Unions rating feature

Bankrate.com Safe & Sound (tm) Bank, Thrift and Credit Unions rating feature

Bankrate.com Safe & Sound (tm) Bank, Thrift and Credit Unions rating feature

[linicx]

I don't bank in Peoria, per se, and I didn't look at the list, but if I had to name a couple I thought was in pretty good shape I would chose CEFCU and SS. Peoria is not rural to me and I did not have a Peoria bank in mind when I made the statement. I personally don't like big banks, banks with arrogant employees, or nation-wide banks.

When I moved it was quick. I closed two loans in 24 hours. I took a 3-year ARM and planned to re-finance the third year. When the economy tanked I did it a year earlier and rolled the ARM into a 30-year fixed. I called my banker and two weeks later he came to the house and closed. You can't do it in Chicago and I can't do it in Peoria.

[wgm007]

Thank you for all of your input. I found a possible lead to accomplish this through a 1st position HELOC with a variable rate. We will see how this goes.