Delayed Financing- What’s the Perk for the Cash?
Hey guys, simple question regarding "delayed financing", which is the term for buying a house cash and then immediately doing a cash out refinance and obtaining a mortgage. I am a Realtor that's been working with a very, very wealthy investor helping her find REO's to flip. The reason I mention this is because she has a boatload of money.
I recently found a house I’d love to purchase as an investment about 3 hours away from me. It’s $130,000 and cash only. 3 family unit with 4 garages in the back.
I’ve been looking up this “delayed financing” technique as I feel it’s my only way to get a property for the time being. I would approach the investor and ask if she’d lend me the total purchase price of the house, close, then obtain a mortgage and give it back to her with interest. Now, I know there’s a bunch of ways it could go. Perhaps they only allow me to take out $70k so then I’d pay her that 70 back immediately and pay off the rest at an accelerated rate monthly. Maybe the give me the 130 back in full. Who knows! The point is, what would the benefit be to this investor to give me this money?
What’s a typical way to go about to to structure it so its a benefit to both of us?
Thank you!