Private money loan to make a cash offer with a 5% fee

Rental Property Investor · Denver, CO · Member since 2019 · 6 posts · 2 votes

Hey property peeps!

I have an offer from a client to lend me 400k for a cash purchase in Denver’s crazy market. He wants a 5% (fee). My question is, if I get a bank to refinance the deal immediately after purchase would it make sense to cut a 20k check for the ability to have a cash offer?

Thanks!

James

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Will BarnardPro Member
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Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
6y
Not in my book, is that your only option to make a cash offer? Surely you can find a better one.
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Joe G.
Rental Property Investor · San Angelo, TX · Member since 2013 · 105 posts · 27 votes
6y
@James Park
provide more numbers to help others understand you deal details. Run numbers. If the fee/service gives you an advantage, maybe it is worth it.
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