refi to cash out

If I were to purchase a property all cash, what are my chances of being able to refi/cash out for other investments if I don't have credit or steady income? Maybe the better question would be - how to do it.

Edited: 06/26/2010 at 06:12AM

David Pullen

· Claremont, California

8 posts
5 Influence

Icon_minipost Oct 24 '08, 11:59 AM

No, that's the right question...unfortunately, the answer is ZERO and NONE as far as your chances.

There are NO non-owner occupant cash out loans (except for hard money) that a lender will not look at your credit and income.
And there probably won't ever be again.

Best to build up your credit (not that hard if you have none) and find someone to partner with.
No credit is better than bad credit, and by finding a partner as co-owner (should be a blood relative), you can buy a home with just 3% down FHA, as an owner occupant.

Don't ever, EVER, EVER, pay ALL CASH for a property unless you plan to flip it FAST !!! (i.e. wholesale it!). CASH is KING in this business and you can't do much of ANYTHING if all your money is tied up in one property that won't sell.

Edited: 06/26/2010 at 06:12AM

Brice C.

Real Estate Investor · Oroville, California

108 posts
-122 Influence
1 Award

Icon_minipost Nov 21 '08, 02:48 AM

ZERO>>>>NONE

Hmmm
as far as your question ....the part about how to do it is right.

Yes virginia there is a Santa Claus

Yes you can finance any property if you contract it low enough. Hard money lenders are good for this as well as private investors.

Banks are not the only option out there.

The other part 'I want To Buy ALL CASH'.......Don't do it....use as small a part of your own cash as possible. Don't even pay cash if your going to flip it. I quit buying properties with my money about 6 years ago.

Edited: 06/26/2010 at 06:26AM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

4293 posts
43789 Influence
15 Awards

Icon_minipost Nov 21 '08, 02:55 AM

I LIKE BRICE!!! We've had a good thread going today of cash flow compared to appreciation benefits under cash is king. I say Appreciation and tax benefits are king to me, although I have cash flow. I am opposed to putting that above the other benefits to create wealth.

Edited: 06/26/2010 at 06:26AM

Brandon Schlichter

Residential Real Estate Agent · Circleville, Ohio

206 posts
167 Influence
1 Award

Icon_minipost Nov 21 '08, 03:22 AM

Katrina , I would check into a small , local bank , you very well may be able to get a co-signer (I did) to carry the loan with you and be able to refi it that way.

In my area, a small local bank will let me cashout refi it with a co-signer, and after a year let me take it over in the name of my own LLC.

Edited: 06/26/2010 at 06:26AM

Shane Wilson

Real Estate Investor · Rocky Face, Georgia

77 posts
22 Influence
1 Award

Icon_minipost Dec 03 '08, 01:56 AM

Talk to a local commerical banker and get a co-signer with a credit score above 620 with income on their tax returns and some cash reserves. You should be able to refi out to 75% to 80%. Talk to several banks. Money's tight right now you have to find the 1-2 that are actively lending.

Edited: 06/26/2010 at 06:32AM