We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
May 17, 2021, 08:45:46 am
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
May 17, 2021, 08:45:46 am
Home Help Search Calendar Login Register

Author Topic: Pulling Cash Out of Deal  (Read 4538 times)

Offline Heiress

  • Member
  • *
  • Posts: 1
Pulling Cash Out of Deal
« on: November 07, 2007, 03:47:49 pm »
There  are numerous properties in the Houston, Texas area that are selling at least  50 % below value.

 Is there any financiing method in which I could purchase a property  that is worth 110,000 for 47,000  do 10,000 in repairs and clear 12,000 to make interest payments while the proerty sells are unitl it is rented?

Bacially 57,000  needed for the house and 12,000 additional .


Offline mcwagner

  • Member
  • *****
  • Posts: 2102
    • Find me on Facebook
Re: Pulling Cash Out of Deal
« Reply #1 on: November 07, 2007, 05:14:41 pm »
find a lender who will go 100% and escrow for repairs.  fix it up.  sell or refinance at market value.
Mark Wagner, CPA, LLC
Certified Public Accountant
http://www.facebook.com/MarkCWagnerCPA

Offline Salverston

  • Member
  • ***
  • Posts: 248
Re: Pulling Cash Out of Deal
« Reply #2 on: November 09, 2007, 11:17:50 am »
These can be done all day long.

STEP 1 - Buy at 50% ARV - generally on private money or HML.

STEP 2 - Do rehab.

STEP 3 - Refinance.  Although some will say to refinance to 100% I would not suggest that in today's market.  It is also tough to do right now.  Better yet, refinance at 75%-80% with standard non-ownwer occupied financing.  Pocket Cash.

STEP 4 - Rent home out for long term cash flow and appreciation.

EXAMPLE: 

$47k  Purchase
$15k rehab, mortgage and holding costs.
$62k total invested

$110k ARV
$77refi loan (70%@30 [email protected]%)
$15k cash out (NOT TAXABLE!!!!!)

This would be a bit thin in my book.  The mortgage in this situation would run $565 P&I so you would have to get enough rent to make that work.  It also would depend on if you have a friendly enough lender to give you terms like that, but it is quite possible.

Offline TraeK

  • Member
  • *
  • Posts: 7
Re: Pulling Cash Out of Deal
« Reply #3 on: November 13, 2007, 08:27:32 pm »
Have you considered a HELOC? The money will be there if you need it, the fees are low, and you can go liquid easy and fast. You still realize your profit when you sell and you dont have to go 100% to cover carrying  cost and rehab.
« Last Edit: November 13, 2007, 08:29:25 pm by TraeK »

Offline stevie-o

  • Member
  • ***
  • Posts: 469
Re: Pulling Cash Out of Deal
« Reply #4 on: November 14, 2007, 02:23:27 pm »
These can be done all day long.

STEP 1 - Buy at 50% ARV - generally on private money or HML.

STEP 2 - Do rehab.

STEP 3 - Refinance.  Although some will say to refinance to 100% I would not suggest that in today's market.  It is also tough to do right now.  Better yet, refinance at 75%-80% with standard non-ownwer occupied financing.  Pocket Cash.

STEP 4 - Rent home out for long term cash flow and appreciation.

EXAMPLE: 

$47k  Purchase
$15k rehab, mortgage and holding costs.
$62k total invested

$110k ARV
$77refi loan (70%@30 [email protected]%)
$15k cash out (NOT TAXABLE!!!!!)

This would be a bit thin in my book.  The mortgage in this situation would run $565 P&I so you would have to get enough rent to make that work.  It also would depend on if you have a friendly enough lender to give you terms like that, but it is quite possible.

Those numbers look great. But a couple problems come to mind:

Seasoning to use appraised value rather than acquisition cost on an IP.

Full Doc or Stated Income on a IP at 80% might be higher than 8%.

-As a broker those 2 things about this scenario stand out first.

Do your homework and make sure you have a lender or broker who will do that deal for you before you buy with that plan.

Offline christopher w

  • Member
  • *****
  • Posts: 2237
Re: Pulling Cash Out of Deal
« Reply #5 on: November 14, 2007, 03:06:51 pm »
There are no seasoning cash-out loans all over the place. Rates are well below 8% even on a stated or no ratio as long as you have the credit for it.
Christopher W
C-214.923.5781

Offline Brookview

  • Member
  • *
  • Posts: 31
    • SellRightNow.com
Re: Pulling Cash Out of Deal
« Reply #6 on: November 14, 2007, 10:36:55 pm »
There are no seasoning cash-out loans all over the place. Rates are well below 8% even on a stated or no ratio as long as you have the credit for it.

What kind of scores are needed to get these loans? What are the other requirements?

Offline christopher w

  • Member
  • *****
  • Posts: 2237
Re: Pulling Cash Out of Deal
« Reply #7 on: November 15, 2007, 07:58:38 am »
Depends on the lender but at least a 680 for stated. Six months PITI for reserves. Stated may require landlord experience of two years. Eac h situation is different. There are still plenty of good investor programs out there.
Christopher W
C-214.923.5781

Offline slipring

  • Member
  • *
  • Posts: 27
Re: Pulling Cash Out of Deal
« Reply #8 on: November 20, 2007, 11:01:42 pm »
Quote from: christopher w
Depends on the lender but at least a 680 for stated.

Are there lenders that will do full doc 80-85% with 630 fico @ 8%-9% ?

Offline christopher w

  • Member
  • *****
  • Posts: 2237
Re: Pulling Cash Out of Deal
« Reply #9 on: November 21, 2007, 06:39:55 pm »
Slipring,

If you are going full doc then 8-9% is pretty high. Mid to high 7's is what you should expect.
Christopher W
C-214.923.5781

Offline Mdhaas

  • Global Moderator
  • Member
  • *****
  • Posts: 2570
Re: Pulling Cash Out of Deal
« Reply #10 on: November 21, 2007, 07:30:50 pm »
Quote
If you are going full doc then 8-9% is pretty high. Mid to high 7's is what you should expect.

This is probably true.  However, without knowing all of the parameters it is a little difficult for any of us to make a truly educated decision.  Quoting a rate at this point is truly a guesstimate.

I would suggest that you check with a few different people.  DO NOT let every one of them pull your credit.  It sounds like you may have already had the opportunity to review it.  Inform them of any and all issues that you may have.  With a 630 there is something that is either occcuring or has occured.  This is what will correlate into a rate and program.

Good Luck!!
If at first you don't succeed.....................skydiving is not for you

Offline CashCow

  • Member
  • *
  • Posts: 17
Re: Pulling Cash Out of Deal
« Reply #11 on: December 10, 2007, 09:52:46 pm »
Christopher W

What lenders do you know who are still offering these no seasoning loans going SIVA on non owner properties?

Seems like that list has dried up a bit, any info you could please share?

Thanks a ton!

Offline Investment Loans

  • Member
  • *****
  • Posts: 1062
    • www.BenCarmona.com
Re: Pulling Cash Out of Deal
« Reply #12 on: December 11, 2007, 09:58:10 am »
You'll probably need to contact a broker directly as most of the lenders only deal wholesale.
To Our Success!
Ben Carmona * Consultant * ALL STATES * www.BenCarmona.com * 314-914-6052
1-4 Unit Investment Properties
Hard Money Rehab Loans * 24hr/1 day double close funds * Portfolio/Commercial/Business Options * No Seasoning Refis

 




SMF 2.0.15 | SMF © 2017, Simple Machines