Own Free And Clear but need help

Guys, I bought a 2 brick unit about 2 months ago for 32k and I have rehabbed it all out of pocket. I’m probably into it for 80 grand. It’s currently listed for sale with an agent for 269k but in today’s market I will probably take 200k. If I can’t sell it and want to get cash can I deed it over to someone else and let them do a cash out refinance?

Just trying to get liquid and my score is lower b/c I’ve taken on some cc debt lately. Let me know. Thanks

If you just deed it over to someone, the property is still free and clear and therefore there is still no mortgage to refinance. You could sell it to someone on a land contract and THEN they could refi out…

if you own it free and clear why dont you get a hard money loan against the property…traditional/conventional lending is near impossible nowadays

RookieNYC is correct in the fact that HML may be your only option. If you deed it over to someone they would have to own it for 12 months before they could do a cash-out transaction on the property. If you have to have the money back do a small HML transaction and keep it on the market. It will sell eventually and you can pay-off the loan at closing. Hope this helps.

Thanks guys… Good info. I will hit up the hard money loan forum and see my options. Thx


There are a couple of options to consider. All of which would include selling the house.

You can discount the property and find a qualified buyer and be done with it and have your cash.

You can sell with owner financing, transfer title, and record a first mortgage to secure your interest. This option then gives you other options which include selling the mortgage at a discount to a private investor or an institutional investor.

The second ‘other’ option you have when you sell with owner financing would be to hypothicate the payments to a bank where you have good credit and a line of credit is available to you. Then, just use your ‘owner financed’ payments to repay a loan at bank interest rates for a period of years.

If you sell the note to an investor or institution, I would recommend only selling 15 years of 30 or 20 years of 30 so that you maintain some equity in the property for when it sells or defaults so you have first right of refusal to resell and make more money. I did this with a mobile home and land package years ago…sold 20 years of a 30 year loan. Many years later, the mortgage company called me to offer me first right of refusal on the defaulted note. Their balance was $20k. I inspected the property and although it needed cosmetic fix up, I sold it in less than a week at $29k as a handyman special. Paid of the $20k balance and kept $9k to buy groceries!

If you get a good down payment and sell with owner financing, you will be able to coch your buyers to conform with FHA guidelines and you could cash out in a year or so. In the meantime, you could always hypothicate 4 or 5 years of payments to the bank to raise some cash on a loan with your good credit.

Hope this helps.

R.E. Investor/Mentor

I want you to think long and hard about what I am about to tell you, for
it may be a lesson you use to make millions.

You are into this unit for 80k and you need cash to salvage your credit and investment.
The agent probably talked a bunch of mumbo jumbo on what they could
get for it and what simular units sold for etc.

Don’t let wishful thinking rule your sales price.

If the property is not moving LOWER THE PRICE!

$149,000, $135,000, $110,000 $105,000 take your money and run
to the next deal. Get your money back and a modest profit and go.
Greed or wishful thinking or someone else saying what they can sell
it for may take a year or never. By then you will be paying property
taxes, maintenance, theft, insurance cost added on to your 80k.

In your area lending of jumbo loans being almost
impossibe, be smart not overly optomistic

Whats wrong with a $62,000 to $25,000 profit? Not a darn thing.
You get your money back and money to reinvest.
Make that money guy and move on… or wait in agony