All Forum Posts by: Will Proulx

@Brian Garrett I am not trying to over-simplify things here but I will for the sake of brevity..

So I could potentially accumulate multiple properties over the next couple of years which are all free and clear due to my getting my initial money invested back from these strategies? And if I had say 4 properties free and clear after a couple of years I would simply have those 4 cashout refinance/ delayed financing interest rates to pay in the future?? Sorry I've absolutely combed forums looking for the catch in this method and I can't seem to find these specific answers..BTW, thanks SO much you both are insanely helpful. 

@Brian Garrett So I can pull ONLY my cash invested out if I elect to do the delayed financing exemption but can possibly pull my cash invested + some if I wait the seasoning period and then do a cash-out refinance? 

@Harjeet Bhatti thanks, that's the crux of my question though, does that mean that the property has to appraise for that 100k BEFORE I rehab it or after? 

Hi guys, 

I'm reading a lot of different stuff on delayed financing and am wondering what the deal is with a delayed financing option for an all-cash, (no lender used, just personal cash) purchase of a property. 

-I've read something about how you can only pull out exactly what you put in? (Random theoretical ease-of-use numbers here) Does this mean that If I bought a property for 50k all cash and it's all mine, I can't pull out say 65k if it is appraised for 100k (using 65% LTV obviously) once renovations are done?

-Basically I'm just wondering first if I can even do a "cash-out REFINANCE" on a property that is not going to be financed at all, simply purchased outright with cash. And if I can, could I potentially get my money back that I used to buy the property AND THEN SOME assuming I can generate enough forced appreciation with renovations? Or is this simply a strategy used to pull back the same amount initially put into the property? 

Thanks in advance for your help,

-Will

BiggerPockets Members,

I am new to bigger pockets, I have become fascinated with the practice of real estate investing and would love to hear from anyone who is experienced, someone who would be willing to exchange messages or even a phone call with me to answer some of my questions.

I know lots of people probably say this but I have done a good amount of research and have a decent knowledge base already, read some books, read countless articles, guides and forum postings regarding many different aspects of REI. I'm simply having a hard time finding people who have actual experience who would be willing to field a few pretty specific questions about the nitty gritty details of REI.

Thanks so much,

Will Proulx

Thanks so much for your reply @Alexander Felise 

So, theoretically, as a beginning investor let's say I run my numbers correctly, purchase a property that is worth purchasing, and then do a cash out refinance after it has appreciated (naturally or forced or both), and, if done correctly, you will essentially just have to continue to pay off the original value of property #1 via your new cash-out refi loan product but get to pocket the excess and use it for future deals. Sorry for my lack of understanding, like I said I am new to this and understand some things in principle but I love to hear from people like you who are actually experienced. 

Lastly, may I ask how you went about purchasing your first property and then the next one after that? I know different people have different methods they've used. Basically just asking for a general answer about..

At the time you first got started into REI..

 1) Your primary residence/living situation

 2) disposable income (if any) you had to buy your first property 

 3) and the strategy used to buy your next property.

Hi guys, Will here, new to bigger pockets, I've learned more in the past 3 weeks about REI than I ever thought possible thanks to this site and all you experienced members willing to share info with people like me!

I have run into a mental block...I think what may be happening is I am getting a HELOC and a cash-out refinance confused..

let's say property #1 was bought for 55k via traditional 30-year ARM (primary residence) the home is then lived in, rehabbed, let's say that takes a year or so, property is appraised at 90k, a couple banks details on their websites state that they offer 65-75% LTV for cash-out refi of primary residence...says nothing about how much you owe on it, but then when I look at the details of the HELOC it's

90,000(home's value)X .9  -MINUS- amount owed on mortgage.

Essentially what I am saying is that the first option, refinancing a good deal/rehabbed property at 65% LTV then buying a rental home and getting in the game with that cash-out refi money just seems too good to be true.

SPECIFICALLY, my questions is...In your individual experiences, do cash-out refinances ALWAYS have a "less amount owed on mortgage" clause? I realize different banks and lenders offer different products, I want to know specifically the nitty gritty details of..

1) The length of time you held the property before refinancing

2) The actual refinancing deal you got 

3) How much you were actually able to pull out of the deal to fund your next property etc..

4) How quickly/slowly, AND how much equity you were able to accumulate. 

Thanks!!