All Forum Posts by: Alexander Fernandez

Yes!  Thank you so much for clarifying

So I have cash in hand ready to buy a house. My goal is to use the delayed financing strategy to get my money back out of the house that i will purchase and buy the next property. However my current lender is convinced that when you pull your money back out you can only get 75% of what the PURCHASE PRICE was and NOT the ARV. He says the house has to season a certain amount of time (months) before you can pull off of the Market value.... So in my mind that makes the delayed financing method pretty useless because you will be losing 25% every house you buy.. From what I gathered you can take out up to 75% of the arv after you have bought the house cash.. In other words if I bout a house for 50K and its worth 100K after I put 25K of repairs into it. Then I will essentially pull all my money back out of the property. The way my lender is explaining it is that I will only be able to pull out 75% of the 50k purchase price... Is this really how it works? Does anyone know of any reputable lenders that do a good job with Delayed financing?

Is there some list somewhere that I am missing? Where is everyone getting their info on the class of neighborhood and the CAP rate? Or is this just subjective?

Cheers!!

thank you! that was very insightful advice!

I put my feet to the fire and bought my first property.. Now I'm hungry for more. but I don't have the capital that I used to have. So I'm looking into growing my portfolio with single family / multifamily homes ranging in the 40-60k range. Ive read a lot about the BRRR strategy which involves gettting a house under market value with some cosmetic issues.. remodeling it and then taking out a cash out refi loan assuming you will get a good margin for the new value of the house after remodeling. now with this money, on to your next house!! It seems like a great plan but I have some questions!!

1. most banks/ credit unions are telling me I have to wait a minimum of 6 months after closing before I can get a cash out refi.. They say its a federal standard.. Is this true? is there any way around this?? I mean I want to get the cash back out as soon as Im done remodeling and move on to the next house.

2. Wouldn't A HELOC also work for this strategy? if so.. which would be better? and what really is the difference?

3. Ok so with this strategy lets say I get a house for 100k sink 20k on down deposit and 10k in renovations and now 2 months later its worth 150K. I get a cash out refi for 135K. So now clearly my monthly payments will be higher now that Ive gone from a 100k mortage to a 135K mortgage. and if I do HELOC it will just be another bill to pay aswell.. This obviously has to be taken into account when doing this strategy right? I mean thats why they say find a house that generates 2% purchase price... Or is it 2% the refinance price? which would make more sense?

cheers guys!!!