How to refi out of a BRRRR thats Seller Finance

[Steve Krause]

Hey Everyone!  I have a few seller finance deals that I am currently rehabing and was wondering if anyone had any creative ideas of pulling the renovation money out while still keeping the seller financing loan since they are 0-3% in place.  Below is a general example.

Bought a house for 100K with majority of it being seller financed at 0% for 20 years.  I dumped around 50K into the property and now is worth around 200-220K.  I want to keep the property longterm since its a good rental and the interest rates unbeatable but I want to pull by 10K downpayment as well as renovation budget out of the property.

Has anyone ever had any sucess refinancing a portion of the home while still keeping seller financing in place?  Or have any other creative strateges for pulling the money back out?  Most lenders I spoke with said HELOCS are not an option since there is still a lien on the property.  

[Ko Kashiwagi]

Hi Steve,

You could put a second position loan on it - like a HELOAN but this will be based off of income/tax returns. A lot of people are similar position - if you have a reason to use the cash, it may make sense to just cash out refinance.

[Kai Kopsch]

On small to medium-sized renovations, I collaborate with Amex using their Business Blueprint. This splendid financial tool provides lines of credit ranging from $2,000 to $250,000, with low monthly fees for six-month loans all the way to 24-month loans. 

With Amex Business credit cards, you can get 0% interest for up to a year, 2% cash back, and a welcome offer plus high credit limits without affecting your personal credit utilization.

[Steve Krause]

Quote from @Kai Kopsch:

On small to medium-sized renovations, I collaborate with Amex using their Business Blueprint. This splendid financial tool provides lines of credit ranging from $2,000 to $250,000, with low monthly fees for six-month loans all the way to 24-month loans. 

With Amex Business credit cards, you can get 0% interest for up to a year, 2% cash back, and a welcome offer plus high credit limits without affecting your personal credit utilization.

 Kai.  Apprecaite it and that sounds like it could be a great option for some future purchases that need a decent amount of work.  I see you are from the Charlotte area as well, do you have a contact at Amex that you used for setting everything up?

[Kai Kopsch]

After you apply for your line of credit, Amex will assign you an account manager. The application is done in 10 minutes online, but I highly recommend establishing a good relationship with Amex before applying. If you have a private card with them apply for a business card first typically they give you 10K as a new business client you can 3X every few months your credit limit on that card and after a few cycles go for the blueprint credit line.