Final questions before taking the plunge...

Financing, Hard Money Lenders, Private Money
1

I am trying to make sure I have my entire plan thought out and covered to minimize as much risks as possible…

Does this sound right or doable to everybody?

  1. Apply for LLC ( I am in Texas by the way)
  2. Use business credit cards to purchase NOO property
    –don’t want personal info pulled
  3. Property will be a forclosure 60 to 70% below value
  4. repair property
  5. Insert renters
  6. Refinance with new loan and pull out 80% value to avoid PMI
  7. Pay off credit cards, put whatever left over to next purchase and start over…

Question 1- what requirements will be looked at when I refinance?? If it is a new company will they want my personal info??

Question 2-If I show the prospective refi lender a lease year long agreement is this sufficient?

Any other tips or hints would be great…Also any Texas related info would be appreciated----exchange of info creates wealth for all involved!!

2

Until this whole ALT-A ****storm clears you may want to hold off on your plan. As has been stated on this web-site many times no-seasoning cash-out loans are getting few and far between. Which means you could be stuck with that house for awhile. Rate term is one thing but no seasoning cash-out is another.

3

Please explain what “no-seasoning cash-out loans” means.

Thanks

4

No seasoning means you have not owned the property or “seasoned” very a certain length of time. This original post was a while back. No seasoniong refi’s are back. However I would not recommend doing what this person is doing. he will have a hard time finding a lender that will do a no seasoning cash-out refinance for an LLC that will give him the terms that a residential lender will offer.