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Updated about 3 years ago,

User Stats

94
Posts
70
Votes
Seth Holmen
  • Architect
  • St. Charles, IL
70
Votes |
94
Posts

Cash purchase to Long-Term Debt. - Illinois

Seth Holmen
  • Architect
  • St. Charles, IL
Posted

I lost out on a 4-unit building with a conventional financing offer. I need to refine my strategy and provide a stronger "cash" offer on the next one. I have a few ways to pull this off but I don't fully understand the timing and loan criteria. Any help here?

I have the ability to offer cash in a few different scenarios. 

1. Hard money from family. 

2. Home equity loan and temporarily pulling funds from IRA or 401K.

My big concern is how can I transition a cash purchase into long-term debt and how long would that take?

A cash-out refinance in an obvious one, but the banks seem less excited about doing that around here and require you to keep more equity in the deal and the interest rates are at a premium over a conventional loan. Also, some are saying they want you to hold the property for 6 months to a year before the refinance. Anything that can happen faster? 

Are there any other creative ways to make this work?  I don't want to keep the cash locked up for more than 6 months. 30-45 days would be ideal.  

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