Delayed Purchase + Rehab Funding?

[Sanat Bhandari]

Hi everyone -

I am working with a buyer that has a property under contract for a while so needs to close on it using personal cash. His plan was to do a fix + flip program but can't do so due to running out of time to close on the property. 

My question is, is there a program out there that offers a delayed purchase and rehab funding combined? As far as I know, he can use delayed purchase to mortgage the property, use his current personal funds to rehab, and then obtain permanent financing once the rehab is done but just wanted to check if someone had a better way of structuring this deal.

Thanks!

[Jason Wray]

Yes, Under a DSCR program it is processed as a delayed financing using the total purchase price plus all renovation/repair costs (Reciepts provided) and you can use 75% of that total value to get cash out.

[Erik Estrada]

Quote from @Sanat Bhandari:

Hi everyone -

I am working with a buyer that has a property under contract for a while so needs to close on it using personal cash. His plan was to do a fix + flip program but can't do so due to running out of time to close on the property. 

My question is, is there a program out there that offers a delayed purchase and rehab funding combined? As far as I know, he can use delayed purchase to mortgage the property, use his current personal funds to rehab, and then obtain permanent financing once the rehab is done but just wanted to check if someone had a better way of structuring this deal.

Thanks!

You might want to look into doing a hard money/bridge loan cash out refinance, make the repairs, and rate and term into a DSCR ARM.