Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
7y
The best your going to get is on Fannie Mae delayed financing only because you paid cash and there are no liens against the property. You can on day one, have a cash out refinance set to close to 75% Max. LTV based on the purchase but no more than the original purchase price plus closing costs for the refinance.
Alternatively, there are some portfolio lenders that will go to 75-80% LTV cash out based on the appraisal, without any seasoning requirements? But its at higher rates.
Rental Property Investor · Queens, NY · Member since 2018 · 99 posts · 70 votes
7y
I read about @Andrew Postell post on cashing out by putting a lien on your property with your LLC. The post's link is here.
Let say the house purchase price was $100k. During the closing date, you close with your 100k cash, and at the same time you use your LLC to mortgage to yourself for $100k and record the lien at the county courthouse without actually transferring the money between the LLC and you, just filing the lien is good enough.
Your LLC now has a lien on your property, and you can refinance the 100k "mortgage" with another lender without the seasoning period because the lender sees this as a refinance instead of delayed financing.
Anyone who has done this strategy or lenders can shine some lights on this for the community?