Financing for a prop that isn’t cash flowing - Posted by Frustrated
Posted by Frustrated on September 08, 2007 at 05:53:45:
I bought an investment property/business 3 years ago in which I verified the tax returns (which later turned out to be falsified). I’m stuck with adjustable payments on it and I really need to refi, but am getting turned down because the business isn’t cash flowing, just breaking even. If I refi, I can save approx 500-700 per month in interest which will allow the property to cash flow, but the lenders aren’t seeing it. Additionally, they are treating the special depreciation I’m taking as a true expense, not a phantom expense. Can anyone give me some ideas? The loan balance is 325K and there is a 2% prepay penalty. I’m currently paying 11% as it is an SBA loan.
Depending on what type of property and business this one is… it can be refi with a buydown to get fixed rates below 11%. We can use income from the business as well as your personal DTI to do the loan. Loan will have to be a FULL DOC loan for rates to be below 11%. Let me know if we can help you further.