I am looking to buy a number of properties well below market value. I’d like to purchase and receive a little cash at closing. I am using private funds for the acquisition. Any advice would be great.
Thanks in advance,
Jaz
If using private funds, then sure. Borrow. more than the purchase price
One way I’ve done it with income property is to set the closing to occur on the 3rd or 4th day after the first of the month on income property. I get the entire month’s credit for rental income up front (less 2 or 3 days) which usually results in cash back from escrow.
Using private funds indicates using money from individuals not institutional banks. If going through banks, then you won’t get cash at closing.
I am closing on a house in mid August where the seller is bringing $10k to the table. But I am buying it at a very high LTV and only buying it because of the $10k.
Other options are advanced strategies such as buying it very cheap into a land trust for example then selling it to your LLC creating a note for the trust and selling the note.
Another option is buying it cheap enough then refinancing it, but that is not cash at closing.
What are you going to do with the cash at closing? Re-invest it? Spend it on consumer goods? Depending on the purpose, maybe there’s a better solution than taking out additional funds agains the value of the house.