HML on a multi-family and refi cash out after

[Dalwin Garcia]

What's going on everyone!

Looking for some advice/guidance here. We're going to be exploring HML soon. I've heard of people using HML to purchase and rehab a house and then refi out to pay off the HML. But has anyone ever used HML on a deal to then refi and CASH OUT? If so, please shed some light! This seems odd to me because in a perfect scenario you would get a HML to fund 100% of your deal with no money out of your pocket, rehab the house while paying your monthly interest payments to the HML, refi a few months later to pay them off but also cashing out and getting a nice chunk of cash? All while not coming out of pocket at all??? Is this even possible? Again, this is just an example, but I have heard of people getting 100% of their deals funded with no money out of their pocket. Someone please shed some light, I'd really appreciate it!

[Cody L.]

Very possible.  I just bought a property w/o a traditional lender for $2.15m  Put in $450k.  So $2.6m total.   It appraised for 3.6m, I took out $2.8m on a new loan.  So I own this property with zero out of pocket, and $200k in my pocket from the bank, and have a nice cash flowing property.

From the time I bought to the day I refinanced was under 4 months. 

Are those deals easy to find?  no.  But financing is there when you do find the deals.