Cash Out Refi Inquiry

[Christopher Manus]

Good Evening Ladies and Gents! 

First time poster, thanks in advance for the assistance! 

I recently completed my first flip in Anderson, IN and made a modest return. Looking back on the deal, tho, I think it would have made for an amazing buy-and-hold investment. Being relatively new to the REI game, I was hoping I could lean on one of you knowledgeable and savvy investors for some advice.

I have a private investor who is willing to finance the entire costs of my rehabs, this includes the purchase price of the property, for a very attractive annualized return. He is paid interest monthly on the principal and then paid in full once the property is sold. On my next investment, I would like to personally hold onto the property as a rental - If the numbers make sense of course. 

The properties will be bought under my LLC, House to Home Rehab, and then rehabbed and if I do my due diligence, I should have at least 20-25% sweat equity built into the property once completed. My question is, how would you suggest I go about pulling the money out of the property to pay off my private investor for the original loan?

Again, thank you in advance for your assistance and advice! 

Chris 

[Upen Patel]

@Christopher Manus You will have to wait for 6 months to get a loan with a new appraisal. At that point, the loan amount will be based on the new appraisal. So if you have enough equity built in you might only have to deal with the closing cost.

Keep in mind, the loan and title has to be in your name. It can't be in the LLC name.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243