Paying all cash question. How do you get your cash back ASP?

8 Replies

So I made an offer on a property and I had preapproval letter from a HM lender, but the seller is not wanting to do a transaction where there is a lender involved in anyway. I have the funds to take the property down without a lender and I even have the funds to rehab it as well. The problem is I am looking at getting another property as well and it is a bank owned property that I would probably have to pay all cash for as well. My question is how can I get my cash back as soon as possible? Does anyone know any Asset based lenders that could help me pull the cash back out as soon as possible or does anyone have any other recommendations for this kind of setting?

Hi Joe, delayed financing is certainly an option after you acquire the property in cash. Most of the time if you pursue the refinance immediately after the acquisition lenders will offer same leverage even though it is technically a cash-out refinance. Some Lenders may reduce by 5-10% but if you are including rehab in the financing you can recoup the majority of your cash invested. May be too late for this particular transaction, but you can also look into a Line of Credit as a financing option through a private lender. This allows you to put "HM LOC-same as cash" on your offers to be competitive with the cash buyers. Hope this helps. Thank you

You don't have to wait to cash out as long as you just want to cash out at your purchase price, which means you'll probably be leaving 20-25% cash behind. If you need every bit of that cash for the next deal then you are probably looking at hard money lending. 

Originally posted by @Doran Summers :

@Joe S. You can do a cashout at 75% ltv based on the current value. Let me know if you need help.

Do you do asset based loans in Mississippi as well as Texas? 

@Joe S. You can get delayed financing most lenders that offer it do up to 100% of purchase and around 75% of as is value. I haven’t personally done it because you have to leave the repair funds in the deal and in my cases if I wait 6 months I can refi all my money out. For an all cash deal and a great price it may be your best option or you could wait 6 months if that lets you pull it all out. It’s up to the math on your specific deal/ if you have a better use of that money elsewhere in the interim.

@Joe S.

Just offer to put up more of a deposit and or a non refundable deposit to the seller. Seller is just not wanting to waste time so if you can put up more of a deposit or see if he can hold the note and option it out. Or see if he will structure a interest only term with you while you work on either raising funds or better yet talking to the bank to do an interest only rehab loan for 18 month. Lots of ways to skin this. Good luck kick *** get it under contract.

Originally posted by @Angel Dejesus :

@Joe S.

Just offer to put up more of a deposit and or a non refundable deposit to the seller. Seller is just not wanting to waste time so if you can put up more of a deposit or see if he can hold the note and option it out. Or see if he will structure a interest only term with you while you work on either raising funds or better yet talking to the bank to do an interest only rehab loan for 18 month. Lots of ways to skin this. Good luck kick *** get it under contract.

 I got it under contract already it’s with the bank. For future reference I will probably up my earnest money and make it nonrefundable to see if that will work. When working with banks it’s hard to deal directly with the decision-makers since realtors are involved as well as bank boards that are salary position.