Financing with own cash

I can save several thousand dollars by finacing the purchase price and minor rehab out of pocket. I can then refi and pull my cash out and do it again. My question is should i do the interim purchase and remodel in my company and sell the property to myself as an individual, or do the financing personally out of pocket with the company acting as the gc, and then rehab, ///which structure would work best…in texas…

The only problem I see is some lenders do not want to do the cash out unless you own property 1 year or longer or else they want to use the actual cost and not the repaired value. Get this clear up front when applying for the loan. I do not know which way is best as I have never had that situtation come up. I would use which ever way you can deduct the most expenses and provide yourself a salary and deduct that expense too.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile

Ted, thanks, i would create a loan/trust deed to myself, or my company, for the purchase price and rehab $$, then refi that note, eg, if my co, loans me the $$ just like it was the bank, and then i secured a new perm loan, to pay off my company note, this would free up the cash to do another deal, and i could seek other private investors also to increase the volume…it needs to be arms lenght…that for sure. plmck

I think you’re making it too complicated.

Buy it in your own name, with your own money, if you want. Fix it. Then refi it. Then deed it to your llc.

Or… use investor money to buy it, then fix it… then refi. it, then deed it to your llc. Keep your own money for unexpected emergencies or cash flow crisis, or to snag other deals in a hurry.

I am going through the refi. process now. The bigger problem is the one year seasoning issue.

Thanks, Tim, is the seasoning a big problem? if it is, thats why i was going to use my co, a lp, to act as a short term lender, in effect, the loan would be to me as an individual, i have had to do this when building a from ground up, if i bring in investors i will probably borrow directly from them, and refi when the work is complete…i intend to keep the properties a min of one year after converting to perm…any other ideas?

The lenders I’ve talked to don’t seem to have a problem if you’re trying to refi and HAVE held if for at least a year.

On the other hand, I’ve got to believe that there ARE lenders out there who don’t have seasoning requirements. It’s just a matter of finding them.

  • Adam.

My lender that will do NOO Cash Out Refi with “No Seasoning”. They are great for rehabbers or people who can simply find good deals. They do lend in Texas and all over the country except a few places. They will do 90% cash out with 620+ fico, full doc and 80% stated 620+ fico. So if you start a rehab and finish by the end of the month, you can pull your profits out and move onto the next project, etc. You can contact me for more info that I can pass along to you. Contact me at 847.368.0893 or


PS: this is my first post here, I like this place!

Cool, Phil!

Thanks for sharing… and welcome!

Do you know if they have minimum loan amounts? I’ve got cheap houses in the $65K range I need to refi.