Does this type of mortgage product exist?

Question

I am looking to stage a cash-out refinance to occur the same day I close on a property. I want to dump all my capital into a lucrative foreclosure property where on closing I will own it 100% and then immediately have a cash-out refinance the same day to extract some of my capital back out.

Robin Simon · Answer

There is "delayed financing" options where you can do this but its usually not same-day.

However, what you are looking for is probably a hard money lender that does not require appraisals - this allows quick closes and functionally the same as cash offers (and pretty much what you appear to be looking for)

Zach Edelman · Answer

You should be able to receive a delayed financing offering from a hard money lender on this. Since you acquired it so recently from when you will close on the loan (in your case 1 day), certain HML lenders will treat this as a purchase rather than a refinance which offers better terms, more leverage, etc.

James McGovern · Answer

His page indicates he only serves New Jersey.

Zaina Jouejati · Answer

@Ryan Muska specializes in delayed financing! He's the best in the business

Zaina Jouejati · Answer

He is licensed in NJ, PA, CT, FL :) @James McGovern

Chris Seveney · Answer

Not with conventional financing.

Mike Klarman · Answer

So, what you are asking is there lenders that will do 0 months seasoning?  I'd say yes, you pay for it in the rate though.  On a cash purchase, most will require 3 months, some 6 months.  There are 0 seasoning outfits around, like I said you pay for it in the loan product cause if you need 0 months seasoning then you may be desperate, desperate people will take not so great terms.

If you're looking to close in cash and then have the refinance close the next day you are dreaming?  How about the leases? Proof of payment? I close both bridge loans and refi loans all the time.  They may/will not even look at the refi of a cash property unless you supply the HUD from the purchase which you do not have cause you haven't closed the loan.

I think if you pursue this you are heading toward headache land and you may possibly screw yourself.  I do not know the numbers of the house, but I do not like the circumstances.

Does this house need work?  Turn key?  You closing in personal name cash, and then quitclaim to LLC and close the refi there?  That's another whole process.  Buy it in cash in name of the LLC to begin with.

James McGovern · Answer

This is for a property sold at auction which I will exhaust all of my money at the closing table. Trying to figure out creative ways to get some of my money back out without a delay caused by underwriting criteria. I have yet to identify a hard money lender that is creative in this regard or has ability to fund a property purchased at a foreclosure auction.

Erik Estrada · Answer

This sounds like a delayed purchase scenario.

Does the property need any rehab work?

Does this type of mortgage product exist?

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