Cash out Equity on a L/O assignment

Financing, Hard Money Lenders, Private Money
1

I am not sure what to expect but here goes.
I have a L/O assignment pending.
house has about 60k in equity.
I am looking to close on the deal and do a equity loan.
My question is Can you cash out on equity on a lease option sale?
Or do I have to refi the house while cashing out the equity.
I don’t need all equity. Looking to put some in reserve to cover payments til I find my option buyer or financed buyer.

Please help because i am confused
Thanks

2

Dear Confused:

It is difficult to determine just what you have. I guess it’s possible if someone had a lease purchase and assigned that contract to you.

There are possibilities to extract equity in a lease purchase contract, however, that would not be from typical lenders/banks. You could assign a portion of your interest in your contract to a private investor with a good interest rate attached to entice that investor to cough up the cash.

Having said that, I don’t understand why you would not just go ahead and purchase the property if there is $60k in equity between your contract price and the appraisal value. Even if you do not have the credit, you could have a partner put up credit on an investor 80/20 % loan and share in the deal. Cashing out would not be a problem as you could get a loan for the full appraisal value.

Ask your lender what amounts you could get back in rent credits or the like from the seller including closing costs.

I’ve done this successfuly in almost 400 transactions over the past 17 years.

Hope this helps.

Rob

Robert Chassner

3

Dear investor King,
I have added you to my contact list in my outlook, This was because you seem to know what you are talking about.
You may also contact me directly!

Thanks

RitoAnthony Brisbane

4

Thanks…hope that helped.

Rob :