100% Investor Cash Purchase followed by Cash Out Financing
Goal:
Own/Hold, residential or commercial property covered under a LLC
Limit initial out of pocket cash to purchase
Utilize 100% investor(s) cash to initially purchase/rehab property
Process:
Purchase property outright entirely with investor(s) cash utilizing an LLC
Fix/Rehab with investor(s) cash
Rent (pay investor(s) % net profit of rental income prior to cash out refinance)
Appraise
Cash out refinance after 6 months (per lender requirement)
Pay off investor(s) 100% + pre-negotiated fixed interest
...Profit
Questions
Will the cash out lender need to know about the cash loan investor(s) he is paying off?
Will this present a problem closing on a new loan?
If the cash out lender needs to know about the cash investor(s), but the cash out loan covers the investor(s) cash loan; is it enough for the new lender to close on this loan knowing they are now in the sole primary loan position after the payoff?
Will the new lender have an issue doing cash out financing under an LLC?
#### NEED ADVICE ####
Please offer me some advice and let me know if this is even possible; it would be very much appreciated. Thanks everyone!