I have a question that I am sure someone will be able to answer if not point me in the right direction. My question is about delayed financing. I purchased a property cash and now we are currently rehabbing it. I bought it under market value so when it is done will appraise or should appraise for more. So with delayed financing is their some fine print that says all money I use to do the rehab has to be my own cash? Can I use some money from a line of credit?
> Can I use some money from a line of credit?
If it's secured by a property either than this one you're fixing up, it'll be calculated as a monthly debt obligation like any other.
Thanks Chris do you mean like a HELOC? Im using all capital but was wondering if I needed to use a line of credit from a credit card I have if that would be an issue when I want to finance it and pull all that money out?
I am not sure you are going to get more cash out then you you put in at the time of purchase. Although the new value will be used in the appraiser I think you will be restricted to 70-75% of the purchase price. If you are looking to get more cash out it isn't delayed financing it is a cash out. I could be wrong but a great question for the lender you plan to work with.
Thank you Travis. Your right I will need to ask my lender.