Plano, TX · Member since 2017 · 10 posts · 3 votes
Who has put together a well done proposal for a Cash Out Refi? I have a property that I purchased using hard-money, paid off the existing mortgage and used about $20K to do cosmetic renovations. I need to find a (portfolio) lender that will loan me enough to pay the hard money and have some cash reserves to repeat the process. Is there anyone that can assist me with formatting a really nice proposal for a lender?
You really don't need to make a presentation or have a template. Find a mortgage broker that does portfolio lending and you should be fine. They'll ask you a bunch of questions, fill out an application, run credit, order title and hazard and check your LLC docs and you're on your way.
There are numerous low seasoning products on the market for you that don't require tax returns and that will give you cash out up to 75% of the new appraised value.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
6y
@Shelton Williams thanks for posting! Always great to hear from a fellow Texan. Bigger Pockets does have some good state specific forums and Texas is their most active forum. Feel free to post there if you ever need some more "local" advise about things.
I would guide you to not write up a proposal yet. Usually if you call a lender they'll ask some questions that will help them prequalify you. No need to write up anything....that is, unless that lender asks you to. I just wouldn't do anything until you know if you need to. I hope that makes sense. If you could even provide some basic details here I think we can even tell you what to expect in an loan:
Is this a single family home? Or a 2-4 unit home?
How long have you owned it?
What is the ARV?
What is the balance of the current mortgage? It sounded like you stated "paid off a mortgage"...but still have a mortgage? Did you mean you paid it down? Just let us know on this one.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
6y
@Shelton Williams Hmmm, so you had a mortgage that you used to purchase it? Then you used a HML to pay off that mortgage? Am I following you correctly?
Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
6y
@Shelton Williams that's an odd way to phrase it. You would generally just say that you purchased a property using hard money. Typically existing liens are paid off during the purchase process.
@Andrew Postell covered a lot of the questions you need to answer for yourself if not us. If you owe more than 70% of your ARV you'll find it difficult to get any money out. The farther you are under that the easier it will be to get more money back.
Yes you should be able to do this. I would work with small local banks in the area. They want to lend money in their local area. They will want to see a currently signed lease and review the numbers to confirm it cash flows. Of course they will ask for plenty of other information; tax returns, credit check, etc. if it’s owned in your personal name they will ask for the same information if it were your own personal house. If it’s owned in an entity they require less information because it’s a commercial loan. They are investing in the project more so then in you.
You really don't need to make a presentation or have a template. Find a mortgage broker that does portfolio lending and you should be fine. They'll ask you a bunch of questions, fill out an application, run credit, order title and hazard and check your LLC docs and you're on your way.
There are numerous low seasoning products on the market for you that don't require tax returns and that will give you cash out up to 75% of the new appraised value.