Rental Property Investor · San Francisco, CA · Member since 2019 · 12 posts · 0 votes
Purchasing with cash+rehab from a 'loan' from your LLC (filed with the county court), can you (re)financing using conventional mortgage, pay original loan and retain the overage? Ex: Purchase price $50,00 + Rehab $25,000 = $75,000 all in . ARV $120,000 @ 80% LTV financed = $96,000 - $75,000(LLC 'loan') = $21,000 If the bak pays the lien ($75,000) can you receive the difference cash out before a seasoning period? Or just find a loan product with no seasoning period?
it sort of depends on the loan type, but not many types will allow all of what you asked.
standard Fannie loan will be 75% LTV, and would let you pull out the extra, but has 6 months seasoning
delayed finance will allow to skip seasoning, but it's 100% of HUD-1 maximum, among other restrictions.
local commercial lender is your best bet, but you might find it hit or miss. It's kind of an unnecessary risk on the banks part, but certainly possible.