The Delayed Financing Strategy

[Jordan Murrell]

We have most recently got a property under contract in the Memphis midtown area.

It is 2 duplexes parceled on the same lot. We are looking to purchase all cash for this property as the market is extremely hot and financed offers sometimes just aren't cutting it.

I was listening to the BiggerPockets Real Estate show quite some time ago and a guest on the show spoke about the delayed financing strategy that she was using to purchase her properties. Having an all cash offer is a much stronger offer and sometimes allows you to offer less as there is no financing contingency. With that said, we have got the property under contract and used an all cash offer.

We are looking to use the delayed finance strategy to refi out our cash and have a mortgage on the property. Delayed financing is a way of purchasing a home in which you pay cash up front, then almost immediately or shortly thereafter obtain a cash out refinance to mortgage the property, which returns a big chunk of your money to you. Depending on the bank 70-75% refinanced out.

Any suggestions on which bank or credit unions offer this service? Have you utilized this strategy before? 

We are going to continue to call lenders to make sure we are getting the best rates.

All input and suggestions would be great.