Want to Make Cash Offer and Pull Money Out Quickly After Purchase

Rehabbing & House Flipping
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Want to Make Cash Offer and Pull Money Out Quickly After Purchase

William Coet
Lititz, PA · Member since 2013 · 595 posts · 272 votes

Hello,

Seeking ideas on techniques to purchase with cash and then refinance.  The goal is to buy with cash, rehab, and sell.

Thanks in advance!

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  • Pablo PereyraBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2014 · 31 posts · 22 votes
    5y

    There are lenders now in place that will let you cashout refinance a property once is RENT ready, not rented. This means you can get money out even before tenant moves in.   Best if the property is over 100K.  Sweet spot is to have leverage less than 75% loan to value.  

    So, if the property is worth 100K fixed up, and finished, you can easily cash out 75K. You could go higher on the LTV but you are taking a major hit on the interest rates.

    These loans are usually to an LLC not a person, you wont be limited to how many you can hold. Ask you local lenders to see if you can offer you financing on Debt service converge ratio (DSCR) not on you income.


    If you are ever in the Memphis market, let me know-  we know where to get the best BBQ. 

    Catalyst Funding
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