Posted by John (WA) on December 10, 1999 at 11:22:29:
In order to best answer your question it would be best to know what your credit is like. Also, how or what have you done to assess a 190K value on the home?
Your question suggests you are relatively new to REI. If this is a correct assumption I would caution you about taking out that much cash from your home. I don’t know what your situation is or your needs but if I were in your shoes I would look to retail the property for FMV and turn those $$$ into profit vice debt. Just my two cents worth.
I’ve just contracted to buy a home that is currently free and clear of all mortgages. I am planning on living in the home for at least 2-3 years. The house and property is currently worth around 190,000. Believe it or not I’m purchasing for 95,000.00 with 15,000 down. The kicker is the guy is willing to take the remaining $80,000.00 @ 8% as a second mortgage. Of course I’d like to create a first which could be quite large, and reinvest this into more deals. What is the best way of going about this? Can I get cashed out in the form of a first mortgage, with this guy holding his second. I need to get this done. I’d like to take $100,000 out of this place whick would be around a 55% loan to value. I’d love to hear any advice about the best way to take the equity out of this place right now! Thanks for all of your time.