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Updated almost 5 years ago on . Most recent reply
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Cash-out refinancing gone?
Hey BP!
I purchased a BRRRR deal (or so I thought) in mid-February with a combination of my HELOC and a couple of private investors on 12-month promissory notes. I am coming to the end of the rehab period. The property is rented. I am looking to pull out cash to pay off the investment sources (HELOC and promissory notes). I approached a bank that I have used in the past for this process and they said that there is no market for this product currently. There are mortgages for purchasing and for refinancing existing mortgages. But, funding sources/investors are not comfortable with cash-out refinancing for investors.
Does anyone have a sense of what is going on with that market? I am concerned if I wait too long to get the property appraised and refinanced the appraisal value will be low (possible market slump/crash?). I don't know what happens behind the curtain of the mortgage world. So, does anyone have an insight into what to look forward to with cash-out refinancing? Will it come back soon? Will it ever come back?
Thanks for sharing your wisdom and knowledge.
Most Popular Reply
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@Chris Mason thanks for the shout out!
let’s hope we don’t get kicked in the nuts in six months from now! We have pretty strong liquidity right now, which is likely what’s driving the decision to keep the product competitive, but I guess we will find out!