Buy cash then refinance into conventional?

[Marvin Z.]

Some lead sources I'm working with throw out deals that require all cash. I like some of these deals and want to participate. I have the cash to purchase but ultimately I would rather use leverage so I keep as much of my capital freed up for more investments.

Is it possible for me to purchase the property outright in cash, then once the deal is over and I own the property, take out a loan or refinance into a conventional loan with a more typical 20% down and get the rest of my cash out?

Thank you in advance for any insights you can provide here!

[Mack Benson]

I believe what you are talking about is delayed financing. This is when you buy a property with cash and then shortly after, do a cash-out refinance and pull all or most of your capital out of the property. It's a quicker way than having to deal with the seasoning of a normal conventional loan which is usually about 6 months. With delayed financing there is no seasoning so your offer can be cash but then you can turn around and use the refinance almost immediately so you can use the leverage you are looking to use.