this is where the conversation began. i took this scenario as meaning LTV. buy something valued at 400K for 375K. i dont know what do you say it means.
Itigue,
If you purchase a property for $375,000 that is worth $400,000 and you say that you need to put 10% down then where does the 95% come from?
Buy it for $375,000-37,500(10% down) = $337,500
337,500 /400,000 = 84% So it would be an 84% refy.
The 95% refy numbers you came up with would only apply if the property were purchased with $0 down.
I give. You win. You debate very well. See you on the next topic.
Itigue,
I am always looking for ways to buy with 100% financing. You say that you can refy on commercial without seasoning. So let me run an idea past you.
I buy a commercial property (ie 12-unit apt) for 100% seller financing with the promise of refinancing immediately after I close and paying him off in full. So I seller finance the full $300,000 worth $400,000 and then refy the next month and pay the seller off in full. Thus creating a 100% financing option for commercial properties.
Does this senaro seem possible???
yes. that does sound like a doable deal.
Itigue,
You seem to be the one in the know, tell me, if you look at the deal that I had posted earlier, and ran the numbers, would this be worth it. I’m looking at purchase (seller financing) 20% down 44k, with refi in 6-12 months to pay off seller. Now, if i’m correct, the value is determined by net income, right? Before or after rental increases? or by existing leases? I want to handle this in the right way with very few (none) mistakes. By the way i’m in KS.
To be honest when it comes to investing or doing something for a client I dont try to guess on a value of a property that is too important i like to leave that up to the experts, Appraisers. What you should do is to get you a good Appraiser on your team that you can run things like this by so that you wont be sorry in the end. they look at this kind of stuff all day and for a living why try to guess when you can have them give you a figure you can almost count on. Thats how i see it. 
Ok, I admire your candor. Can you tell me how appraisers put value. Its got to be different than what lenders look at. I say this because the lender/investor has said that I could be loaned more with appraisal than asking price. But the same %age amount will be the same. Just sounds funny to me, but then again I’m just starting out. I think I will check out some appraisers and see if i can’t get one on my team.
Thank you a bunch. I mean it.
i think what the investor was saying is you may be able to base you PA according to the appraisal instead of sales price. for instance seller wants 250K value really 450K say you qualify for 80%. Base the 80% on value (450K) 360K is your loan amount. base 80% on asking price (250K) your loan is 200K you need to bring 50K plus closing cost to table. 
Are talking about residential or commercial?