All Forum Posts by: Jesse LeBlanc

yes sir, np @Rafael Elias Leal

That's because they are still thinking Cash Out Refi most likely @Joe S., otherwise you might just need to look into another lender.  It's definitely not 75% of what you paid though.  Either their is a miscommunication or they just aren't the lender I'd work with honestly.

But a Rate and Term is always off the Appraised Value (from any lender i've talked with so far).  So let's say 75% of appraised value of 100k, they'd loan you up to 75k.  However, your current loan is 70k.  So now they will go with the lower, your 70k.   on a cash out, they'd give you the 75k, then you'd leave closing with 5k cash (minus closing cost etc, but to keep it simple is my example).

Outside of that, every lender and their requirements could be a tad different in what their SOP is and what they require.

You can just use an assignment agreement. They can assign their contract to you for a fee and you can then assign over to your buyer, or you can double close.

or they can close but then you have a contract with the wholesaler and you assign yours over to the end buyer.

the last crazy option is 3 closings, which is nuts but happens.  Seller closes with your wholesaler.  You close with that wholesaler, and your end buyer closes with you. 

@Dakota Adney yes sirrr, but if you don’t have to pull more $ out then don’t.  In most cases it’s better for you long term.  Then find more PML and deals with equity for best case scenario.  

Whatever you do, don’t fudge up your cash flow!

@Dakota Adney so for a rate and term refi, they can only refi up to the 75 or 80% of the appraised value but NOT TO EXCEED the current loan you have if that’s below 75%

Exactly @Steve Vaughan, agreed.  The lender isn’t checking who owns the company the $ came from.  Definitely a safer method in the sense of you controlling the funds the entire time.

I've thought of doing that between a couple of my s-corps (well, LLC's taxed as s-Corp) but I was afraid (only because I never asked the cpa or attorney to know) their could be some conflict or lie. So I just never tried and was afraid to tell anyone here since I wasn't sure. But the more I think about it, I don't see why there would be a problem or how the heck with they know, so it would probably never be questioned. 👍🏼👍🏼

@Jonathan Morris i'm glad you received value from it sir, I wish you much success, many rentals with solid passive income and great wealth. :)

first off @Martin Carew, what kind of car is that!  Looks badass :)

To the best of my knowledge sir, UNLESS you sold to an end buyer (defeating the purpose of you keeping rentals), then I am only aware of waiting until you can do a cash out refinance.

HOWEVER, due to a previous post, there is something I have NOT tried yet but would 100% shoot for and can probably still make it happen earlier vs the cash out refi.  If you have someone you trust (at your own risk), you can create a note for the amount you have in the deal (or a different amount ;) ) and either record that as a lien against your property OR discuss with your closing attorney ahead of time and ask them, but you might not have to record the lien but can present them with a loan payoff (the lender might ask for it as well). Then at this time could continue with the Rate and Term refinance because there is a current loan that is presented you are now trying to refinance.  Of course the amount at closing WOULD HAVE to be paid to whomever you made the note with.    

So again, the latter part is a do it at your own risk depending on who you trust and can make sure you get your money back.  I do have investor friends that lend each other money on the regular and never charge each other interest, so it's a very similar situation, but they usually have their lien recorded.

@Rudy Munoz in case any other questions can help others reading later, let me know what you're missing or still have questions about.  I'll reply here to assist as often as I can.

BE CAREFUL, if you plan on having an end buyer that is conventional, your plans most likely will go south quick.  Most Conventional lenders will see that you are not on the deed at the time you went under contract with their client, your end buyer.  And they will not approve the funding.

You can buy the property with HML, PML or your own cash then relist. You can go under contract and still try to sell to an end buyer but you will have a smaller pool of buyers who have all cash or an investor buying the property (who might have better lending options).

Also, you probably want to be transparent with your seller if you were to do this. A) your contract probably should state you can list the property B) if you did list then cancelled the listing your seller will get a TON of calls from other agents who are trying to pick up a new listing once they saw that this listing expired or was terminated.  so if you didn't tell your seller, then you did this, they'd find out quick.

If you are very transparent with your seller, then you could still get them UC at your price then you handle everything on the listing side but when it comes to closing you most likely would have to be a line item on the seller side HUD and allow your Seller to be direct with your buyer so the buyers lender sees the seller on deed is who is on contract and they will never bring up your fee on the seller side. Your fee would be similar to a lien they owe, so the end buyers lender would never question it. Then the sales price is what the end buyer buys it for, your fee would be the difference between what you and the seller agreed on, you're paid off at closing and all parties are happy. This is usually a little tougher for some people to swallow though, so just keep that all in mind.

I also offer Transactional Funding, "Wholesalers Transactional Funding", but we aren't currently offering Short Term Funding ie GAP or Bridge loans.