can I do a cash out and close at the same time?

Financing, Hard Money Lenders, Private Money
1

Hey all,

I have an accepted offer on an REO for 42.5K. I’m putting 1K down for a deposit. In as-is condition it should appraise at 65K. I have it sold already on a rent to own with monthly payments of 655.00 per month, got the docs signed and sealed already (yahoo!). Is it possible for me to pull money out along with closing on the property…instead of closing on the property and then doing a cash-out re-fi a couple months later? My fico’s are in the high 7’s and can go full doc.

I’m gonna put about 3.5K in for repairs before closing for the new owners and add my repair total to their end price of the home so their purchase price will be 63.5K. Right now it sits as a duplex but it will be turned into a 3bd, 2 bath, 2 car attached garage. If my numbers are right I’m sitting at a 64% LTV. I’m gonna be looking at going up to 85% LTV on the cash out leaving my mortgage at 55,250.00 which should still let me cash flow a little bit. Thoughts please,

Nate-WI

2

I would recomend doing a heloc, stand alone 2nd, or even refinancing into a pay option to get the minimum payment about 6 months after you purchase the home. You also get cash at closing but I would have to know how much money you are wanting to take out.

3

This is a situation that needs to structured correctly. I need a complete understanding of how title is currently held and the C/I (credit and income of the buyer)

4

Title is going into LLC. Credit 750-780. Income is full doc. Looking to go 85%LTV off of appraised value. Appraised at 65K. Purchase price of 42.5K with 1K down.

5

There are some particulars that should be discussed. Either email me directly or call the listed number. I have a lender that will give you 65% of the ARP (after repair value)

6

65% will not get it done. I’m better of closing and than doing a cashout at 85% LTV.

7

what will the value of the property be after repairs. It is likely depending that the after repair value would be more than the 85% LTV as is

8

Arv is 80K. Its assessed at 73K. It needs about 1K in work. Couple of windows and a patch up job for drywall. Should appraise at 75-80K. 80K x 85%LTV equals 68K. I’m buying it for 55K with 1K down as a deposit.