Investor · Austin, TX · Member since 2015 · 29 posts · 2 votes
Property Value: 375k
Rehab: 125k
ARV: 625k
My partner and I currently own an investment property outright in our LLC and I am looking for ways to finance the rehab. I have the cash to be able to cover the rehab but would like to finance it so that we can jump on another opportunity should one arise. That being said, I really dont like the idea of paying 3-4% origination on a 20% LTV. Are there any other (cheaper) options for me that wouldn't require me to leverage any of my personal assets?
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
10y
@Ryan Walker You could use the property as collateral and pull $125k out of the property as a cash out refi with someone who has cheaper points. At that LTV, you could roll the points into the loan.
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
10y
@Ryan Walker You could use the property as collateral and pull $125k out of the property as a cash out refi with someone who has cheaper points. At that LTV, you could roll the points into the loan.
Investor · Austin, TX · Member since 2015 · 29 posts · 2 votes
10y
Thanks for the reply. How quickly can we close on something like that? And would we have too personally sign for the note, or would the property be the sole collateral?
Lender · Northbrook, IL · Member since 2016 · 24 posts · 2 votes
10y
@Ryan Walker I agree with Jason that a cash out refinance would give you more than enough to cover the rehab amount, no reason to pay 3 to 4 points. The limiter on how quickly you could close will be based on how quickly a lender gets all the needed docs and turnaround time for an appraisal; roughly a week to 10 days. Feel free to reach out for more specifics or other questions.
Interior Designer and Home stager · Austin, TX · Member since 2016 · 40 posts · 14 votes
10y
@Ryan Walker It seems that a cash out on the property that you own free and clear would be the best way to go. This allows you the cash flow that you want so you are able to go about more projects along side this one. If that sounds like something that interests you shoot me a message and I can see how I can help. :)