Cash Out Hack for financing Airbnb / VRBO / Vacation Rental in AZ
Hard Money Loans for Real Estate Investing in Arizona
We will help you increase your profits from your Airbnb / VRBO / Vacation rental property!
We just had a borrower put in $97,500 of cash into their loan, and they were able to get $115,000 out of their property within days of construction being completed... BEFORE they refinanced it or listed it as a Airbnb. So their cash on cash ROI (return on investment) is infiniti! How?!
Klinkloans Cash Out Hack!
How it works:
- Finance the purchase of your vacation rental with Klinkloans
- Complete your renovations/construction as normal
- Once complete, start your refinance with your takeout lender
- Once appraisal comes in, we will give you a cash out draw maxing out your loan amount up to 80% of appraised value [we match the Loan To Value (LTV) of your new takeout loan up to 80%].
- Complete your refinance as a rate/term transaction - allowing you to get a more competitive rate for your long term loan (as opposed to a cash out loan with the new lender).
This extra cash allows you to:
- Add the finishing touches on furnishing your rental
- Recoup some of the money you have spent / pay people back quicker
- Roll that money onto your next project!
- Be more profitable
A successful example we just completed:
Purchase price: $362,500
Loan amount: $290,000 (80% of purchase price)
Borrower’s Downpayment: $72,500
Rehab budget: $100,000
Rehab loan: $75,000 [75% Loan To Cost (LTC)]
Borrower Rehab Responsibility: $25,000
Total Borrower Costs out of pocket: $97,500 (plus misc)
Loan balance after construction: $365,000
Total loan possible based on $600,000 appraisal (80%): $480,000
Total cash out to borrower before their refinance: $115,000
*Note this does NOT include closing costs, holding costs the borrower must pay for. Also borrowers do need to front construction costs in phases - as we lend on improvements once they have been completed into the property.
If you want to have the success of this borrower and...
- Be more profitable
- Start another project quicker
- Save money in the long term by doing a rate/term refinance with your takeout lender (as opposed to needing to do a cash out refinance with them, which would give you a higher interest rate).
Call Mike at Klinkloans today. We would love to help you with your next real estate investment project in Arizona!
Please note, the "cash out hack" only works for properties that you are planning to refinance.
Loan Programs we offer:
- Fix and Flip loans
- Airbnb / VRBO / Vacation Rental loans (with a unique cash out hack!)
- Construction Loans
- Bridge Loans
- 1031 Exchange
- Multi-Family loans
- Commercial loans
- Group Homes loans
- Trustee Sales
Call, text, or email us - we would love to build a relationship with you and assist you in building wealth.
Mike Zins | 480.795.7133 | [email protected] | NMLS#183815
Klinkloans Fund is a part of the Stewardship Mortgage Private Lending Division.
Stewardship Mortgage LLC is an Equal Housing Opportunity Lender and a licensed Mortgage Broker MB#0909516 and Loan Originator NMLS#154011 in the state of Arizona. Stewardship Mortgage LLC is acting as a Loan Originating Agent and NOT a Principal.