I need more buying cash

10 Replies

sorry no picture yet, I will. Your talking to blond hair blue eyed Barb. But anyway, I'm new here. I've been using my own cash to buy properties. How can I get more cash to start buy low rehab and sell. I don't want to do hard money lenders. I don't want to put a line of credit on m own house, don't really like getting friends and family involved as  lenders. Did talk to some banks..line of credit from my hair business...or line of credit on rental properties I have or any other ways???? I did see on one of the blogs about refinancing some of the properties?? hmmmmm...HELP! There is 5 houses within 5 miles of me vacant and ready for rehab at unbelievable prices!!! I need cash NOW!!! 

Look around for an executive line of credit.  Certain wealth restrictions like net worth, cash flow, credit but I know a local bank that does them. Prime plus 1 and interest only up to 150k. Some one else told me about it and I'm surprised they aren't mentioned around here.  Hardest part might be finding someone that does them and qualifying. 

Refi is your answer.  If you bought your existing homes all cash, you have 100% equity as far as any refinancing is concerned.  I'll give you an example of how it works for me here:

1 - $45k = Buy all cash for property.
2 - Season home as long as needed to get refi (for me that's 6 months)
3 - $64k ARV x 75% = $48k. Refinance. ( I can refinance up to 75% of the ARV of the property at the time of REFI) In this example I got all my cash back + $3k more.
4 - Use funds from REFI to get next house
5 - Repeat as many times a you can get loans.

This way, you don't need new money, you just keep using the same money over an over again.

The criteria is that the property you are buying must:

1 - Cash flow to begin with
2 - Be able to refinance out at least as much as you put in.
3 - Must still cash flow after you refinance.

Joe V

Thanks Mike! I haven't heard of that one?? What does that exactly mean? Is that like getting a business loan against my hair business? One of my banks mentioned that, $150k for 6 months interest only then if not paid goes into a regular loan. no closing costs, no appraisals. Is this a way to go?

Thanks Joe! I have 3 properties paid cash! But do they go buy your real estate taxes to get the loan ? or do I have to get these houses appraised?

I have done blanket mortgages in the past with no money down.  That's an Idea JOE! Thanks!

I mean cashing out my properties..i forgot about that!  :)

A new loan will require some sort of appraisal.  Tax assessments are useless for valuation.  Sometimes its a thorough appraisal, sometimes just a desk valuation done by the bank.

@Barbara Long  What @Jon Holdman  said.  However you get there.  Look at it this way.  The thimble is your playing piece of choice (Monopoly).  Everytime you pas "GO", you collect $200...except in this case, you collect 75% of whatever your property is valued at.

Gotcha guys, thanx! I don't know what I was thinking! I forgot I had those properties paid for...to the bank Monday!! Thanks guys! I want these houses BAD!I Of coarse the business line of credit wouldn't be a bad thing just to have access to when needed for rehabbing! :)

Originally posted by @Barbara Long :

Gotcha guys, thanx! I don't know what I was thinking! I forgot I had those properties paid for...to the bank Monday!! Thanks guys! I want these houses BAD!I Of coarse the business line of credit wouldn't be a bad thing just to have access to when needed for rehabbing! :)

 Go for whatever your can get.  Use the cheapest.  Make sure you still cash flow after the dust clears, and you become your own bank...and have fun.

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