REI Brokers

09/24/2025

Just got a loan approved for 6.125% at 75% max leverage on a refinance of an SFR. Yep. I know you are super skeptical with lenders putting out these types of teaser rates. They are too good to be true, They are real—just structured with conditions. Understanding those strings allows smart investors like you to benefit.

Here's my top 7 list for getting the best rates... and if you need assistance, hit me up. Happy to help.

How to Get the Best Rates
Experience Level – Lenders score investors based on track record over the last three years, from Tier 1 (new, 3–5 projects) up to Tier 5 (23+ projects). More experience = better terms. This could be a combination of flips, recent purchases, rentals, or refi’s. The point spread between a Tier 1 and Tier 5 could be 1%.
Credit Score – A FICO of 740+ can shave off an additional 0.25 and access the max LTV available. Less than 700 and you will see a 5% haircut on your LTV.
Loan-to-Value (LTV) – The max LTV on a refinance is 75% or 80% on a purchase. If your cost basis is low in your refi and you do not need to tap into all your equity, reducing the LTV by 5% could shave .35 to .5 off the rate.
After-Repair Value (ARV) – Higher-value properties generally qualify for better rates. If you are sub $150,000 ARV, expect a higher rate.
Location – Markets with declining property values may see lenders reduce max LTV by 5% which may still get you to a lower rate. Lower LTV = better rate.
Buydowns – Paying points upfront can lower your rate, but every lender has a floor. Know it before buying down. Now. I am not a fan of buying points and never have. Why? It can take you 7-10 years to recoup that buydown. So, unless you plan on holding for at least seven years, I don't recommend it.
Origination Points – Some lenders may offer a reduced rate by raising their origination fees in lieu of a point buydown. Is there really a difference? Not much. For commercial lenders, this is a common and acceptable practice—it’s simply another method of offering you a lower rate.

The Fed’s recent .25 rate cut is a small step, but creates opportunities for investors. Those who kept buying during high-rate years are now well positioned to refinance into stronger cash flow. And, investors stuck with expensive bridge loans or sitting on the sidelines need to act now. The key is understanding how experience, credit, LTV, ARV, and location affect your financing terms. Hit me up if I can be of assistance.

Stay smart!

09/18/2025

NEED MONEY TO FUND YOUR NEXT DEAL?
✔ FIX & FLIP / BRIDGE LOANS:
• Up to 90% LTC + 100% renovations with rates as low as 9% interest only
• Loan amounts are as low as $75,000 /$100,000 ARV.
• Purchase price can be any amount, but total loan (90% LTC + renovations) must be $75,000 or greater. This is a game changer!
• Up to 24 month loans
• 1-4 units
• No minimum on purchase price provided the minimum loan (purchase + renovations) of $75,000. For example, $25,000 purchase price (90% LTC = $22,000) and $53,000 renovation costs with a $100,000 ARV (loan amount cannot exceed 75% LTV)
✔ RENTAL / DSCR LOANS:
• Rates as low as 6.5%, up to 75% LTV, cash-out refi’s after only 90 days seasoning, no cap on rental loans.
• 30 yr/30 yr AM
• 1-4 units
• Long term rentals, section 8 rentals and short term rentals (Airbnb)
• We can refi properties with values as low as $50,000 (min. 3 properties)
• Rates and terms are subject to lenders minimum requirements.

Contact REI Brokers today to discuss your next investment project.
www.reibrokers.com or IM me to schedule a call.

30 yr. fixed loans on SFR, portfolio & multifamily. 90% loan on fix & flips.

11/19/2024

WHOLESALE PROPERTY FOR SALE
7904 1st Ave S. Birmingham, AL 35206
3 bedroom / 2 bathroom
1,266 sq. ft.
Built in 1935
ARV: $200,000+
SALES PRICE: $79,000
3 bedrooms and 2 baths with 1-car garage. Metal roof. Large back yard. You can do so much with this property - fix & flip, long term/short term rental, lease option or contract for deed. It has a lot of character with hardwood floors, living room and dining area. The other houses next to this one have already been scooped up by other investors and are under renovations. Fixer uppers are selling in the $100K range and comps for fully remodeled houses in the area are $200,000+ depending on your level of upgrades.

7904 1st Ave S. Birmingham, AL 352063 bedrooms and 2 baths with 1-car garage. 1,266 sq. ft. and built in 1935. It features a metal roof. Large back yard. You...

08/19/2024

We are investors who help investors with their fix & flip/bridge & refi loans. We understand your unique needs, speak the same language and work with multiple lenders to help you find the best rate and terms for your project.

FIX & FLIP LOAN OVERVIEW
Month Bridge / fix and flip credit is 640 minimum
No Experience required
No appraisal still for fix and flip / bridge
DSCR seasoning went down to only 90 days
Max loan size went up to $1.5MM
Soft credit and inspection

LOAN TERMS
Minimum loan amount: $100,000
Maximum loan amount: $3,000,000
12-month term, 18-month term, and 24-month term
No prepayment penalty

MAX LEVERAGE
90% of purchase price
75% of after repair value (ARV) w/ and w/o holdback
Max rehab cost: $250,000 (via holdback)

INTEREST RATE
Rates start at 9.25% on fix and flip

ELIGIBLE PROPERTIES
SFRs, 2-4 plex, Condos, PUDs, Manufactured Homes

We look forward to helping you get your properties financed. If you'd like to chat, please IM me or visit www.reibrokers for additional information.

05/03/2024

WHY REFINANCING AT A HIGHER RATE MAY BE YOUR BEST MOVE

As an investor eyeing a refinance for your rental properties, you're sitting on the fence waiting until commercial rates drop from their current 7.5% average. Your existing rate stands at a favorable 5%, but your portfolio boasts a nice chunk of equity you're thinking about using for another project. Does this scenario sound familiar?

Back during the financial crisis, investors were sitting at an average Loan-to-Value (LTV) ratio of 81%. But now, it's down between 50% to 60% or even lower. That's a big improvement, and it gives you a huge advantage.

Let's break it down with an example. You have a current $50K loan with a 30-year fixed rate mortgage rate of 5% on one of your properties. The property is worth $140K and you have $90K equity. Your feeling pretty good about your leverage but still thinking of tapping into that equity.

Here's the numbers:

$50,000 loan
$1,335 yearly taxes
$875 yearly insurance
$745.33 PITI monthly payment
$15,600 yearly rent ($1,300/monthly)
$6,656.04 yearly net income (Yearly Mortgage - Yearly Rent)

But when you start looking deeper, you find you've got other debts, short term hard money/private lender loans and credit card debt financing renovations. Here's an example of what that might look like:

$25,000 private money loan at 10% = $208.33 interest only/monthly
$15,000 credit card debt at 22% = $275 interest only/monthly
$483.33/ total monthly interest payment

$745.33 PITI + $483.33 = $1,228.66 - $1,300 rent = $71.34 monthly cash flow.

Here's another way to look at it:
$50,000 mortgage loan
$25,000 private money loan
$15,000 credit card debt
$90,000 combined debt
$1,228.66 total monthly payments

Your blended interest rate is a whopping 16.253%.

And you want to wait until commercial interest rates drop? Suddenly, you're seeing the financial situation in a whole new light. You realize you need to pay off those debts.

As it stands at the time of this writing (3 May 2024), the best commercial loan interest rate available is 7.4% at 75% LTV cash out with a $105,000 loan.

Here's the breakdown:
$105,000 loan amount
$908.67 PITI monthly payment @ 7.5% interest

$908.67 - $1,300 = $391.33 monthly cash flow.

All your debts are paid off, you increased your cash flow 18%, and you still put some money in your pocket after closing costs.

Instead of just focusing on waiting for lower mortgage rates to arrive, you can tap into your current equity and tweak the loan-to-value ratio to lower the rate and maintain a cash flow positive position. Consider a lower LTV (from 75% to 70%), buying down the rate 1 point, and extending your pre-payment penalty period. All this can lower your refi rate even more. Essentially, you're restructuring your debts, narrowing the gap between your current and future mortgage payments.

This strategy may not work for every scenario, especially if you lack equity in the properties. However, for those with ample equity, it's a game changer.

By shifting your mindset, you can adapt to changing market dynamics and effectively expand your portfolio.

IM or email to [email protected] if we can be of further assistance.

06/08/2022

27. BRRRR – TOP 10 REASONS A LOAN IS DECLINED
This is the next installment in a multi-post series on financing your rental investment properties using the BRRRR strategy.

Typically, loans are denied when issues are discovered during the underwriting period. Here is our top ten list.

1. Borrower FICO score does not meet the minimum required prior to loan closing. Often, lenders will pull credit a soft credit at time they receive the application and a hard pull after the appraisal value is agreed upon. I had one lender deny a loan because the borrower FICO was 559, not the minimum 660 required.

2. Any judgements that show up against the borrower on their credit. B prepared to provide a recorded copy of a Satisfaction of Judgement from the county clerk. If the judgement has not been resolved, your loan will be denied.

3. If you have any late payments on either your primary mortgage (the one you live in) or any other mortgage from an investment property, you loan will be denied.

4. If the appraisal value falls below the minimum value required by the lender, they will cancel the loan.

5. As rates rise at the time of this writing, there are lenders who are adjusting their loan programs. If an adjustment is made and your property falls below their minimum loan requirements, there is a very good chance they will cancel your loan. Very rarely have I seen a lender grandfather in a loan after program revisions.

6. If your actual rents are much lower than your stated rents, your loan could be adjusted from 75% maximum cash out to a lower LTV such as 70%. This will increase the DSCR to the minimum requirement. If the DSCR drops below the minimum and you have no way of decreasing the LTV or increasing rents, the lender will cancel the loan.

7. If you were untruthful in any way on your loan application and it is discovered during the underwriting due diligence period, you can bet your loan will be cancelled. Bad debt, arrest, foreclosure, eviction, bankruptcy are all loan disqualifiers.

8. The property must be stabilized with tenant occupancy and minimal repairs required (discovered during appraisal). If the property needs excessive repairs, the lender will require those repairs to be made prior to closing. If it is beyond your budget or you simply do not wish to make the repairs, the lender will cancel the loan.

9. Failure to provide all documentation will place your loan on inactive status inevitably leading to cancellation. Inactive status does not always been a loan cancellation but if reactivated, underwriting will treat it as a new loan.

10. You need to document tenant deposits and rent collection from your property management software. Also, lenders will want to see these deposits in your bank account. If not documented or the numbers don't add up, the lender will not proceed with your loan.

Got questions regarding financing your BRRRR properties? Please reach out to us. We are happy to assist.

Jonathan Mednick has been real estate investor since 2002. He is a co-founder of REI Trader LLC (investment company), Real Equity Inc (real estate brokerage) and REI Brokers (money loans). He has extensive experience in all areas of real estate investing and lending. To date, he has completed over 2,000 projects.

06/01/2022

Like many of the loans we help secure for investors, we went through the exact same process for one of our rental portfolios we were seeking to refinance. We started the process a few months ago when rates were still in the low 4% range for a 30 year fixed/30 year AM loan on a 75% LTV cash out.

We were initially offered a 4.1% rate and as we proceeded through the underwriting process, rates started to climb to 4.5%, 5.1%, 5.5%, 5.99%, then finally to 6.5% (commercial lenders do not lock rates until after they receive the appraisals back). A 6.5% rate seems fine if you are refinancing one or a few SFR's. However, it does not work for an SFR multi-million dollar portfolio. This has a significant negative impact on our overall cash flow. A half point (let alone 2.4 point) rise is thousands of dollars in lost revenue.

With so much time invested, plus the $16,000 we spent on appraisals, the lender assumed we would still close. Instead, we opted to cancel the loan. Why? We had an alternative financing option ready. We were able to secure a 4.25% with a 25 year AM for five years with one of our local community banks here in Birmingham (rates increased to 5%). We recently completed the refi and received a pretty decent check at closing.

With rates rising, now more than ever, it is important to have a secondary option to financing. If you are seeking a similar loan, we can assist. You must be an Alabama resident and corporation. Reach out to me for further info.

05/26/2022

I had the pleasure of being the guest on the Evernest Podcast discussing the Birmingham market, how I built a 100+ rental portfolio, my predictions on the housing market for the rest of 2022, the secret to managing turnkey properties as an out-of-state investor, plus Multi-family, short-term rentals, exit strategies, financing rentals, and more!

Gray and Spencer talk to Jonathan Mednick, a local real estate professional with 20 years in the business and learn more about his story and his thoughts on ...

05/15/2022

Joe Rusaw just closed on his 4th SFR refi with us here in Birmingham and put a cool $23,000 in his pocket.

We are Closing Table with Joe Rusaw discussing how he went from a $70K appraisal to a $130K appraisal and $23,000 cash out on his refinance of his SFR ...

03/02/2022

n this episode, Spencer welcomes Jonathan Mednick, the managing director of REI Trading, LLC, and a financial broker with Real Equity Realty.Jonathan special...

02/24/2022

REI Brokers is at the closing table with Conrad Ercolono who just completed a refinance of his Dayton, OH duplex. With a cash out of $55,000, Conrad discusses his approach to the BRRRR strategy and how he plans to use these funds to purchase additional properties.

Conrad Ercolono is @ the closing table discussing his refinance of his duplex in Dayton, OH. We discuss the challenges of the BRRRR strategy and how he was a...