All Forum Posts by: Darius Holloway
Darius Holloway has started 2 posts and replied 5 times.
Post: Best loan options today to pull money back out after purchasing SFH with cash?
- Richmond, VA
- Posts 5
- Votes 2
Quote from @Jay Hurst:
Quote from @Darius Holloway:
Hey all,
I bought a foreclosure home using cash, about a month ago. Fortunately it does not appear to need much repair/renovations. I will not know the finer details until I get the former owner removed (in the process of that now). However, the goal is to mortgage it to get the cash back out in order to move on to the next property (BRRRR). Considering high interest rates, I want to find the best options for greatest return. Any thoughts, suggestions?
Thanks
@Darius Holloway Delayed financing for a conventional loan (Fannie/Freddie) is up to 6 months, the 3 months mentioned above would be for certain non-conventional products. Delayed financing will allow for you to pull out what you purchased the property for. But that is just one piece. You also have to stay within the loan to value requirements for your property type and occupancy. Assuming this a non-owner occupied ingle family home the max for a conventional loan would be 75% loan to value. For example, if you purchased the home for 150k and the property is worth 150k you could borrow 75% or 112,500. However if the property is worth 200k, you could borrow 75% of 150k and get your cash back out. If the property is worth 250k, you would be capped at 150k because that is what you paid for it. (well, 150k plus closing costs on the new loan) You would have to wait 6 months to be able to pull out the full 75% or 187,500 in that example.
Right. Any thoughts on pursuing conventional vs. non-conventional if I wait the seasoning period?
Post: Best loan options today to pull money back out after purchasing SFH with cash?
- Richmond, VA
- Posts 5
- Votes 2
Hey all,
I bought a foreclosure home using cash, about a month ago. Fortunately it does not appear to need much repair/renovations. I will not know the finer details until I get the former owner removed (in the process of that now). However, the goal is to mortgage it to get the cash back out in order to move on to the next property (BRRRR). Considering high interest rates, I want to find the best options for greatest return. Any thoughts, suggestions?
Thanks
Post: New Member, Looking for suggestions for rehab funding
- Richmond, VA
- Posts 5
- Votes 2
@Nghi Le That is correct. $20k purchase, about $40k rehab. I calculated the ARV to be about 100k. (Using comp. prop. values from Zillow).
Thanks for the input guys. @Grant Rothenburger
Post: New Member, Looking for suggestions for rehab funding
- Richmond, VA
- Posts 5
- Votes 2
Thanks! @Amy H. The initial purchase isn't going to be financed because it will be bought cash out from a long friend of the family at a super discounted price (20k). The rehab is estimated to be 30-40k. There isn't enough money to cover the purchase and the rehab or to put any aside for the rehab. So, since the house needs work, the plan was to get those done then mortgage the rehab costs to get out of the short term loan cost. Think there's a better approach?
Post: New Member, Looking for suggestions for rehab funding
- Richmond, VA
- Posts 5
- Votes 2
Hello all! My name is Darius Holloway. I currently reside in Washington, DC. I am an attorney and looking to get the wheels rolling on a real estate investment venture. I'm pursuing a 3bd/1ba property in Hopewell, Virginia with the intention to rehab it to 4bd/2ba. The property will be bought cash out. But after that, I will need funding for the rehab. After which, I intend to take out a mortgage to pay off the rehab costs. Any suggestions for the best approach, or short term loan rehab funding companies?
I'm so glad this space exists, and happy to be here!