Example: I find a house at 65%LTV, I finance for 70%LTV in order to have money for repairs. Howevethe lenders I’ve talked to r it seems that the only way for me to get “cash back” is by way of an escrow account. Any way to get real cash or is this normal procedure?
Lenders will not allow you to receive cash back at closing unless, as you say, it is an escrow account or a rehab loan.
Is this property for sale by a private owner?
There are ways to structure this deal.
Would you like some addtional help?
Yes its privately owned. I’m actually plannig on doing the deal with a partner. I would fix it up and then cash out refinance, following that, i’d try to lease/option it.
I could use the cash right now (plus its tax deffered)…
Its one of about three properties im looking at. One of them has about $45,000 worth of equity and needs no repairs. Could i buy this with hard money and then refinance also? Or would i do better to try to wholesale it? (i’m really trying to cash out ASAP)
ArcAngele,
The truth is that you CAN get cash back at closing. I’ve done it many times. The key is to use a small local bank which keeps their loans in their portfolio.
Relationships are key when dealing with banks. Instead of calling a mortgage broker or a bank, you should get to know a decision maker at the bank. You might be able to get a referral from a successful investor or meet one of these decision makers at a local civic organization.
Mike