Delayed Financing for a 4plex in Kansas City MO

[Lee Ripma]

Hi BP community, 

I've read extensively about the delayed financing option where I close with my own cash and then am able to refinance using Fannie Mae based on the appraised value. 

Here is a link the relevant article. 

https://www.biggerpockets.com/renewsblog/2015/01/0...

The appraised value on this property should be in the 140k range and I'm under contract for less than that. I usually don't use Fannie Mae and instead use commercial banks for my investment properties because I find the residential appraisal process so painful. My experience has always been that they just give you back and appraised value at exactly what you paid for the deal. It seems like an appraisal should be independent of this price paid for RE investors, but no one can seem to bear to appraise for more than that. 

Is delayed finacing a real option for me? Will the lenders just look at what I paid or will they actually do a real appraisal? Is there anyone on this site who actually does these and could talk about them? 

Delayed financing, Kansas City lender, mortgage 

Thanks for your time! 

[Gordon Cuffe]

@Lee RipmaA Fannie Mae lender will use the purchase price as the appraised value for the first year after the purchase . You will need a portfolio lender. I think Arvest bank or First American bank will use the new appraised value before a year. I have a portfolio lender that will use the new appraised value before a year but that is for properties in California only.