I was hoping to do a "delayed mortgage" with private money. Property is 295k. I put down 100k and private money supplies 195k to close with cash. From what I have been reading I can do an immediate cash out, with no seasoning, for 70% of purchase price. Does anyone have any experience with this?
I personally don't but if you know some one who does I'd be willing to do a couple deals with you.
Here is a blog I wrote on cash out refinancing;
To answer your question, you can't do a cash out refinance on a property with delayed financing if you have a mortgage out on the property. You could do that cash out if you paid all cash.
You can do a rate and term refinance.
@Jerry Padilla Could I get an unsecured note from private money (not recorded) and then cash out refi to pay the private money? Would the bank or mortgage lender have a problem with the paper trail for the money? Is there an option along these lines?
@Shedrick Nettles shoot me a message and let me know what type of investments you are interested in.
Make sure you have no mortgage on the property if you want to do delayed financing. You can have an outstanding unsecured promissory note that can be paid out of the "delayed financing" cash out. It will have to be paid directly out of escrow and the promissory note has to say it is not secured by the real property.
If you meet the above then you can generally get up to 75% LTV on a sfr or 70% LTV on units in cash out.
Otherwise you have to wait until you've made 6 monthly payments on the mortgage.
@Jason Carter you can do a business partner and this scenario. Underwriters will want to see a paper trail. No offense, but who would give you $195k unsecured? Why not get a mortgage in the first place?
I did a cash-out refi on my first deal but it was based on the after repair value. At the time, my mortgage broker told me they won't even look at you until you have owned the property for 6 months. Not sure if that was because of the large increase in the value or just standard practice. We got an 80% LTV at a rate about 50 basis points higher than what conventional 30 years were at.
@Jason Carter here is a blog I did on delayed financing guidelines.
@Zach Mitchell they can do based on ARV after 6 months
I really appreciate your time and input. Thank You, Everyone.
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