Cash out Rental property
I live in Houston and would like to cash out on one of my properties. Any recommendations?
What type of terms are you looking for?
I'll assume long-term loans (since I am planning on doing something similar). I have a few options that I am planning on utililzing:
- Conventional financing: If you have the properties under your personal name, this is easier to do. If it's under a legal entity, you probably can't do this option (as far as I know). Depends on how much equity you have and that will determine how much they'll lend. It'll also be much more stringent and you'll have more hoops to jump through but your interest rate will probably be lower and you can get a 20-30 year note pretty easily.
- Private lending: Find an individual looking for long term gains and make them a solid offer on what you're looking for. The terms will be whatever you both can agree to and it'll be easier in terms of qualifying but you'll have to do all your own paperwork. Consult a real estate attorney for all the legal dox you will need.
- Portfolio lending: If you have your properties under an LLC or other legal entity, this is probably the way to go. There are some brokers and lenders who do porfolio lending. This will be based on the asset and not so much the borrower (as compared to conventional). Many banks will do portfolio lending (especially the smaller ones) or you can find a full-service brokerage to help. I've heard good things about Noble Mortgage but I haven't used them yet so please do you due diligence on working with them.
I plan to go the portfolio lending path as I have my properties under a legal entity and plan to keep them that way for the time being.
sell it. The ultimate cash out
If you do decide to sell @Bil Casimir, I'd be happy to discuss listing it for you. Just shoot me a PM.
Originally posted by @Trey Watson:
sell it. The ultimate cash out
No, the ultimate cash out is to get a loan for >100% of your original purchase price, then you get the option for free