Refinance Immediately?

Question

If I purchase property at 70% for cash, when will I be able to get a HEL/refinance?  Is there a common seaoning time with most lenders or can it be done within the next month?

Account Closed · Answer

Correct.

Account Closed · Answer

Yes, as long as they close in the name of your entity instead of you just quit claiming them into the entity after closing.

LLC loans are available from portfolio lenders NOT conventional lenders.

Account Closed · Answer

You will always personally guarantee the LLC loans (unless you have a non-recourse loan which is rare on residential) but the 4 prop max doesn't apply because it still won't report to your personal credit report.

Account Closed · Answer

Wachovia does originate in the name of an LLC, though...

Account Closed · Answer

Two words ... portfolio lenders. Try going to Wachovia or BankUnited direct (they do not work with mortgage brokers anymore) OR here's a site to find credit unions in your area creditunionaccess.com

Account Closed · Answer

I think you're reading too much into my posts. I said you're paying off debt. How did you get to fraud? Interesting assumption.

Paying cash is fine if you don't want the money back anytime soon. I guess I just assume that most investors are like me and don't want to keep their money tied up in the house.  Hey I have an idea - use somebody else's cash. Oh, wait, that's what I said!  :D

Account Closed · Answer

The biggest mistake you can make right now is paying cash for props if you want that cash back within 6 mos.

Even after 6 mos you will be limited to the amount of cash you can get AND the LTV will be a lot lower than you are expecting often leaving 30-40% of your cash locked in that house.

Always have a note and deed of trust on a prop when you purchase - not one of your companies but maybe a friend or colleague - so that when you are refinancing you are paying off debt.

Lynn Z · Answer

Wachovia is the last bank in town to help investors.   They want too much.  I've asked my credit union over the years about investor financing--they just don't do it and they're the largest credit union in the state.

You have to find and establish a relationshp with a regional bank (commercial division) and they go 15 years 5 year balloon with a decent rate.

BB&T and BOA used to do portfolios but don't know about today.

Ask some realtors that work with investors to give you a banker's name they know will will loan money.

Tom C · Answer

. Thanks Ben.. That explained it. I didn't realize that it was actually looked at so closely. I thought it was all automated. I am surprised that if loans are actually looked at so closely, then I would think that the lender would see that the note on the home wasn't a legitimate lending source and was actually a fictitious company.

Since apparently they don't. It seems like an awful lot of work just to get slight rate decrease, unless of course there are other advantages to placing a fictitious note on a property?.

Ben Carmona · Answer

http://www.mtgprofessor.com/A%20-%20Refinance/why_is_this_refinance_cash-out.htm