Creative Financing looking for advice to pull equity/refinance

[Magaly Wilson]

Hello I am a current real estate investor/ new real estate agent and I obtained 2 properties with creative financing. Both property's are located in Danville VA and essentially what i did was pay seller the amount they wanted to net for the sale and took over the payments for their current mortgage providers. We did not have the properties deeded in our name but have had rented out the property for 2 years and that's included on our taxes. The issue I'm encountering is the loan balance is now under 50k for each property what are my options besides a personal loan to purchase? each property has 100k in equity.

[Drago Stanimirovic]

Magaly, you're in a strong position with $100k in equity for each property, and you have a few solid options beyond personal loans to take advantage of. One route is to explore refinancing these properties into your name with a cash-out refinance, which would allow you to access some of the equity while officially transferring the deeds. This could be especially useful if you want to leverage that equity for further investments. Another option is assuming the existing mortgage, which would involve contacting the current lenders to explore formalizing the arrangement and having the properties deeded in your name while taking over the loans. You could also consider seller financing, where you work out a deal with the sellers to pay off the remaining mortgage balance while securing the deed.

All these options would help you avoid the risks of not holding title to the properties while also giving you access to the equity you've built. If you need assistance with the financing process, I’d be happy to help explore the best solution for your situation!

Best,

Drago