Buying Cash then Re-fi?

[Aurelio Mallamace]

Hey everyone,

Just wanted to see if anyone has had experience with paying cash for a home to combat the competitiveness in today's market then shortly after re-financing to pull out cash to do the same on another property.

My thoughts are that this could be a good way to make an offer stand out, be at or near the top of the list of offers, and win deals.

A few items for clarity:

I imagine under the refi terms, I would only be able to pull back 75%-80%, thus resulting in the same net results as a down payment of that amount, correct?

Is there a set time period in which I would have to wait to complete the refi - 45,60,90+ days?

Any other items to be taken into consideration?

Thanks for any/all input on this.

[Owen Dashner]

@Aurelio Mallamace you don't need business credit for commercial loans. You need a personal financial statement, 2-3 years of tax returns, and a current rent roll (if you have one). That's it, provided the property meets DSCR coverage minimum for the bank (1.25 is common). You are likely going to personally guarantee the loan.

Get those things in order, then start asking other investors in your area for referrals to bankers, then start hitting the phones.