Refinancing to pull out equity

[Caleb Mclamb]

Hello BP, 

Ive done some site research and see related topics but not this question.

I am researching using a conventional loan for an investment property with approximately 20% down payment. That 20%down payment will be made by a local investor who has never invested before.

Can i pull all 20% back out to pay them (plus their interest) after the seasoning period or am I being unrealistic?

ie could i offer them something like 10% on their money for a one year investment or is it harder to refinance than you would think? I deffinitely want to build strong relationships and not "play" with other peoples money without full confidence.

Thank you

Caleb Mclamb

[Laura Williams]

no worries;) it is confusing. Back before the market crashed and the lending standards tightened you could have probably done what you are talking about. But now days most banks require equity to be in the property. Your bank manager should be able to talk you through how it works :) it also doesn't hurt to talk to a few banks to see which one will offer you the best terms.