Cash out refinance sub2 deal - Posted by scott

Posted by John on September 15, 2004 at 06:46:29:

I would be interested in hearing how this would be structured.

The problem will be with the title and which name it is in.

Tell us more.

Cash out refinance sub2 deal - Posted by scott

Posted by scott on September 13, 2004 at 17:16:13:

hi all-

here is the situation. I have obtained property sub2. i have the deed but have not recorded yet. we are ready to now, b/c we have a tenant buyer to do a lease option. We want to get our cash out now and not on the backend. Couple of options here, we would like to transfer deed into land trust, already have this step done, just have to record it. But then, we want to either cash out refi or some type of equity loan.

Numbers are

Amount owed

Approx 105,000
prepayment penalty 3000

Should appraise for (would like it to appraise for around) 170,000.

We could do an 80% cash out. What are our options? Any problems finding lender with no seasoning and having title in land trust???/

Re: Cash out refinance sub2 deal - Posted by John

Posted by John on September 15, 2004 at 06:50:17:

I am curious to see what others say.

I would expect the problem is going to be the title is not something
most lenders will want to deal with. Conventional lenders at a

Have you recorded the lease/option?

Look at it from the point of view that there is a problem later and the
lender wants the place back. Depending on the order of recording and
just who is on the loan vs. the title the lender might be caught out.

I am really curious if this can be done without having to lie to the
lender. Also, will a title insurance company be happy writing a policy.

I wait in the hope that I will be educated.

The last time someone walked through this the title was a bit clouded
and the lender would need to be pretty aggressive to want the deal.

ALternatively you could sell out your position to another investor. You
will get a bit less but that will work.


Re: Cash out refinance sub2 deal - Posted by moremom

Posted by moremom on September 14, 2004 at 16:05:37:

I would do it right now but not record land trust yet. I can give you more specifics if you want to go over how I would recommend structuring it. Please feel free to email me.