All Forum Posts by: Adam Soyak

@Brent Coombs.  So you are saying that my original privately borrowed funds is classified as a gift?  So even if I obtain delayed financing, those privately borrowed funds cannot be handled in that loan?

 Banks are saying that I am not allowed to use the money to payoff a "gift".  Do you know of another way? 

 "Note: Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan."

Thanks

@Wayne Brooks 

@Andreas W.The ARV is $230k. My original plan was to pay in cash 100k, refi, and use the money in the refi to repair. Reason I didn't get a loan was the seller shrank closing date so I wouldn't be able to close in time.

@Andreas W.-

  I will reach out to local lenders to see if they do the delayed financing.     

Hello everyone,

I have a cash purchase for 100k that will close next month.  30k of the cash is coming from a family member that wants their money back as soon as possible.  I am looking to get a mortgage on the property as soon as possible so I can pay the family member back.    Right now I am being told I have to wait 6 months to refi, but that doesn't work for my family member.  I cant lose this deal.  What is the fastest way to obtain this mortgage or what are my options. Thank you!

 Unfortunately the bank has told us that if I counter for the 30 days, they will open the other offers and then proceed.  So I am risking losing the deal, and per my calculations it is a great deal.  Right now, I am the first one in and there are backup offers.  The property can be conventionally financed, however the time period allotted is too tight for my local banks to guarantee the 21 day period because of the appraisals currently being out 2-3 weeks.  The bank is not allowing and exclusion for the appraisal either.    

Thanks Wayne, that is correct about the closing.  I will see what the seller comes back with.

Thanks for the reply Jeff.  I mentioned a 10% return but they refused interest.  I'm thinking they might have been burned in the past loaning money.  Right now the plan is the funds are going to me, then a cashiers check for the lump sum at close.

The seller has requested a 21 day mortgage contingency on the offer that I originally proposed as a 30-day conventional loan.  After speaking with multiple banks, obtaining that 21 day mortgage is slim to none.  So, I got creative and have some friends and family assisting in funding the initial purchase of the property for cash.  One of the family members is requesting their money back within 30 days (asking for no interest, VERY nice family member).    So right now I am looking at 3 closings and wanted to see if I could get any advice on how to avoid because of the cost implications.  And is there anything else I should be looking out for.  (ie. Title transfers, etc.)

First closing-Cash Purchase

Second closing-Get mortgage on property to pay family member back

Third Closing-Selling the property once Flipped.

Thank you!