Cash purchase: Pulling out cash after cash purchase

[Gere W.]

I'm talking about buying with cash, pulling out cash from one house to purchase the next vs cash for down payment and getting traditional loan. Sounds like BRRR, but isn't. Hard to put my question into words.

Why do this? Because can't qualify for loans right now, but JV partner has 120k cash. How can we churn that cash over and over to work for us? Thinking of ways to artificially leverage with cash only.

Examples with clear numbers would be appreciated.

Here are my particulars:

Buy house with cash for $100k. That means I have 100% equity in the house now? Can I now turn around after cash purchase and pull the 100%/100k equity/cash out...…but how? Cash out refi? How could there be a refi if there's no loan to pay off? Use a HELOC? Get a traditional loan now? Only after forced appreciation (rehab)? What if house was unchanged and no rehab? Other methods?

BRRR seems to only be with loans, but how to BRRR with cash purchase? What are the differences? I understand leverage vs cash debate, not my question. Me and JV partner can't qualify for traditional loans right now, but have cash to purchase. Otherwise, I'd leverage for sure.

Are there time limits to this? Ie. can only pull cash after 6 months after purchase? Immediately able to pull cash out after cash purchase? What sets or determines this timeline?

Does the market/appraised value of house affect it? How?

Only able to do this with a rehab to force appreciation and buffer the value? Otherwise, I'd assume HELOC/whatever would do 80% LTV and I could only pull 80k cash out of that 100k. But with appreciation, say ARV of 125k, can I pull out 80% again and get 100k cash?

Only possible with conventional lenders? Private/hard money? Not as common, but negotiable like anything else? How would lender secure the loan? 

[Samuel Diouf]

This is called delayed financing. Typically, it will be with a DSCR refi right after you purchase.

I'd be happy to send you a list of lenders to connect with!