All Forum Posts by: Freddie Williams

Im considering the same issue. I have a condo that valued at 55k which is free and clear. Im clearing $400 a month and is considering to cash out half the equity to reinvest in other income producing properties. My main issue is finding a bank that will fund only 25k, cash out from an investment property. Any suggestions or comments?

@Bill Gulley Wow ... sell it? Yes its a rental and has a lot of equity along with good tenants. Plus within the last 3 years the property has increased in value by 10 percent. I was hoping for a better suggestion than selling it.

My problem is I rehabbed the property with my own funds. Purchasing the property on rent to own contract (3 years) . Work completed and rented out for 900 a month.

Now that property is complete. Problem is lenders asking me to put down 20% to close it in my name. No one will consider my contract as a refinance which is what I desperately need.

Any advice or help would be greatly appreciated..

@Andrew Postell So your saying my LLC lends me the money (as mortgage) then I get a mortgage in my name to refinance???

@Andrew Postell So your suggesting that I get a rehab loan in my name, then refinance me out using my LLC? Do you know whats needed to qualify my LLC for a mortgage? Just curious. Or can I go it also in reverse.. have the LLC purchase the property with rehab loan and then I refinance the property to get LLC off the propery?

@Katherine S. I agree but even with your suggestion for conventional. @Andrew Postell I do have a LLC so I am interested in your suggestion. Please tell me more.

Do they offer cash out refi for investment, didnt see that on their website.

Maybe someone can help me in regards to the best way of doing this. I would like to purchase rental property to hold. So my strategy was to purchase with won payment with a rehab or conventional financing. Most properties I am considering is below market value, around 55, 65 LTV.

Knowing I have to put a 20 % or more down payment to purchase is standard. After closing the property at a later date if not soon obtain a cash out refinance loan. Reason for this is to get my down payment back out of the property in order to proceed to the next project.

Could someone suggest a financing option to achieve this goal. I only found one credit union would do a cash out option but only after I hold the property for 6 months min. Obviously this will not work to quickly grow my portfolio.

Any help or suggestions would be greatly appreciate.

@Mike Dymski your scenario is a little confusing.

Property #1 value = $160

Property #1 debt = $120 (75% LTV)

Property #1 equity = $40

In regards to the 75%, are you referring to that 75 to be the loan???? The $40 is the equity of $160k I get this..

Guess what I am unclear about is the 75%... is it a loan for rehab then hard money usually want you to put a down payment for purchase. Now if your referring to that then there is additional equity.. but not much. If your refinancing, then max on NOO is 80% and property already has a HML of 75%. You will receive your initial down payment back but not much after. Thanks for all your advice. Im sure Im not the only one that appreciates it.

Thank you @Brent Coombs for your response. I am currently in the process of starting up again. I had several investment properties that I have sold to purchase my personal property and beginning to rebuild my portfolio. This is when I ran into this situation. I do not want to do flips anymore and beginning to look towards my future and retirement. So I thought this was a good place to get every ones input as to strategy. Its never too late to learn.