Refi after cash deal

[David Nadelstumph]

Just signed on first deal. Paid cash for discount and quick close. My question is should I buy Title insurance upfront knowing it s required by lender. I plan to pull my $ back out immediately after cash closing. Dont want to pay twice. Only paid cash because I believe its a good deal. My original plan is to leverage the cash into 3-5 properties.

thank you

[Albert Bui]

Originally posted by @David Nadelstumph:

Just signed on first deal. Paid cash for discount and quick close. My question is should I buy Title insurance upfront knowing it s required by lender. I plan to pull my $ back out immediately after cash closing. Dont want to pay twice. Only paid cash because I believe its a good deal. My original plan is to leverage the cash into 3-5 properties.

thank you

Regarding Delayed Financing Exception (DFE)

I can only speak from a direct FNMA lender position but the amount of time you have to do a delayed financing transaction is actually 6 months after the date of an all cash purchase.

Secondly, this DFE or delayed financing exception can be done for primary, secondary, and investment properties NOT just for primary residences.

Thirdly, you can get cash back up to 70% of the market value up to the total of your acquisition cost at the time of appraisal so if your "purchase price," is 100k and you spent 4k in closing costs then that means you can cash out up to 70%of the appraisal or 104k whichever is "less."

This means if the appraisal is 130k X 70% = $91,000 then that means you will have 13,000 of your money stuck in the property and be able to get out the 91,000 back (minus refi closing costs of course of the DFE transaction).

you would need an appraisal of 104k / 70% = $148,571.43 value or higher in order to get back all of your 100k + 4k closing costs as an example.