Cash problem ahead of closing - HELP

[Doug McLeod]

A friend (really) is scheduled to close next week on a tear down property with a construction loan. She was relying on cash from conforming cash-out refinances of two other properties to provide down payment / construction lender minimum down. Refi lender “discovered” late that my friend needs higher reserves due to number of financed properties.

Biggest problem with delaying refinances is being unable to close on new property with NO finance contingency. No issue with current rates on existing loans.

What ideas do you have that we have not already thought of?

-Negotiate with seller - get out of contract vs. new terms to acquire property and buy time to get reserves for refi.

-Find a money partner to get into the new deal.

-Refinance the two properties with some other loan (commercial or even hard money) along with negotiating delayed close on new purchase.

[Allan Smith]

Negotiate with seller. If no dice, Close on new purchase with hard money and count it a learned lesson to never rely on a re fi to close on time or at all for that matter. Hard money is fast.