cash out after purchase & rehab

under contract on a 3 family rental property...im paying cash...but i wish to get the cash back asap after its fully rented out?...i know fannie upped the limit back to 10 but did anything change regarding cash out deals?

Edited: 06/26/2010 at 07:31AM

B G, Robten Realty LLC
Bob Granara Robten Realty LLC Rgranara@comcast.net 781 526-7836

Larry Seith

Real Estate Investor · Dallas, Oregon

74 posts
28 Influence
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Icon_minipost Mar 10 '09, 02:20 AM

I too, have the same general question. Is it still possible to do cash out re-fi's on re-hab projects purchases with hard money loans?
I've heard that banks now will only take the purchase price (what YOU paid for it) to figure LTV not the after repair appraised value. Is this true?
Anybody having any success out there with a purchase-rehab-refi-hold strategy?

Edited: 06/26/2010 at 07:31AM

Mark Yuschak

Rehabber · Grand Blanc, Michigan

713 posts
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Icon_minipost Mar 10 '09, 04:00 AM

I'm in the process of going through this exact scenario with a property. I bought it in Jan., 2008 with cash. Rehabbed it and am now trying to do a cash-out refi. The best I can get out of any bank is 50% appraised LTV. That value does clear what I paid for the property, but doesn't do me a whole lot of good with putting more cash in my pocket for the next one...

Edited: 06/26/2010 at 07:31AM

Curt Davis

Wholesaler · Memphis, Tennessee

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Icon_minipost Mar 10 '09, 04:18 AM

If you buy a home using cash you will have to let it season for 6 months in order to get your money back.

Edited: 06/26/2010 at 07:31AM

Curt Davis, buyMemphisnow.com
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Ben Carmona

· Wentzville/St. Louis, Missouri

359 posts
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Icon_minipost Mar 10 '09, 11:34 AM

wow...I feel like my post go unread. You guys should really do a search on this forum for the material you're looking for.

Fannie/Freddie
Cash out...6 months seasoning
Rate/Term...NO seasoning..use Real appraisal value
Cash out on property with no mortgage (paid all cash)...12 months with Fannie to use appraisal value or use purchase + fix...6 months with Freddie to use value.

If those dont work then you can always look at options of getting a commercial/business/portfolio loan. Typically these loan dont have seasoning. Properties needed to rented.

Edited: 06/26/2010 at 07:32AM

Larry Seith

Real Estate Investor · Dallas, Oregon

74 posts
28 Influence
1 Award

Icon_minipost Mar 10 '09, 12:22 PM

Thanks for the reply Ben. I had already assumed that any bank selling to the second market was out of the question. So my question was really if anyone had any luck with the smaller portfolio lenders and what type of hoops they needed to go through for a cash out refi.

Edited: 06/26/2010 at 07:32AM

Fake Guy

· CA

21 posts
54 Influence
1 Award

Icon_minipost Mar 12 '09, 02:47 AM

I am very interested in learning about lenders who do this as well. I am in the same boat.

Edited: 06/26/2010 at 07:33AM

Ben Carmona

· Wentzville/St. Louis, Missouri

359 posts
14 Influence
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Icon_minipost Mar 13 '09, 10:04 AM

So basically you need some one to coach and consult with you about there options, along with possibly referring you to a source?

Edited: 06/26/2010 at 07:34AM

Fake Guy

· CA

21 posts
54 Influence
1 Award

Icon_minipost Mar 23 '09, 08:39 AM

Well, I am looking for lenders who overlook the 6 month seasoning requirement. I would like to start buying faster and not waiting 6 months between properties.

Edited: 06/26/2010 at 07:40AM

B G

Real Estate Investor · reading, Massachusetts

123 posts
421 Influence
2 Awards

Icon_minipost May 17 '09, 09:15 AM

found a small portfolio lender just outside boston...they say they had zero foreclosures on their books last year...anywho i can refi out asap into a 5 yr ARM amort over 30 at 6%...cash out up to 70% of ARV

just what i was looking for except for the 5 ARM part

Edited: 06/26/2010 at 08:15AM

B G, Robten Realty LLC
Bob Granara Robten Realty LLC Rgranara@comcast.net 781 526-7836

Fran Fagen

Real Estate Investor · Newport beach, California

42 posts
-29 Influence

Icon_minipost May 17 '09, 09:35 AM

can you share your information with us? lender's name and contact information
Thank you

Edited: 06/26/2010 at 08:15AM

Gus S

Real Estate Investor · Los Angeles, California

8 posts
5 Influence

Icon_minipost May 19 '09, 06:35 PM

I have held my properties for 6 months, but I am now being told seasoning has been extended to 12 months for non owner occupied investment cash out refi.
Does anyone know any lenders still asking for 6 month seasoning.
Properties are in Ohio.

Edited: 06/26/2010 at 08:16AM

Sergio De anda

Private Money Lender · San Diego, California

5 posts
23 Influence

Icon_minipost Jun 01 '09, 07:49 AM

I'm a private money lender and figured I'd share our point of view as to how we would look at it.

If you bought the property cash and were looking to leverage yourself and take the max cash out, totally makes sense and we woudl lend to 60% LTV.

That being said we would give you the value of what you paid for it and add any amount you spent on the rehab to the purchase price.

Edited: 06/26/2010 at 08:25AM