Friendly seconds

[John G.]

Is anyone in BP land using friendly seconds? The most common reason I heard for using them is to protect equity. Is anyone using them to help with the lack of cash out refis?

Since banks are so skeptical about cash out refis right now, this could be a way to get your cash back out of a deal.

You (another entity) put a friendly second on the property. At close, the new lender pays off the first and the second. Then the friendly second lender pays out to you to cover the cash you put in during purchase/rehab.

Does this make sense? Is it possible?

Thanks!