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Updated over 7 years ago,
First Cash Out Refi Deal
Hello BP,
I'm currently working on my first cash-out-refi deal with a portfolio lender. The bank will give me 80% ARV with no seasoning period - just need a valid lease. My private lender is a close friend who is charging me interest only on the cash loan. Before I get started, I want to put this out there to BP to make sure I'm not missing anything major:
1) Cash will be wired direct to Title company at close by my lender. Is there anything I need to be aware of to prevent unforeseen tax implications down the road?
2) When the Cash-out-refi occurs and I pay my lender back with interest, is there anything I need to be aware of to prevent unforeseen tax implications?
3) Any additional cash that is pulled out and kept within our LLC - any tax implications on this?
I just want to get a full understanding of whether there is something I'm missing by moving this money around.
Any help is appreciated!
Thanks,