Posted by JohnBoy on January 04, 2001 at 16:18:22:
Would just doing a refi based on as is value work? If I understood this deal correctly the property would appraise for a lot more than what is owed on it the way it sits. So rather than try to do a refi for rehab, just refinance the building based on the current as is appraised value. Couldn’t he do it this way and get cash out if the LTV would exceed his current mortgage balance? What kind of a LTV could he get on just refinancing this based on “as is” condition and forgetting about the rehab thing?
Also, if he could just refi the thing he may even be able to get the current lender to discount their note to get it paid off. After all, they did just tell him they were no longer doing loans in his state at this time…so maybe he could get a decent discount on this and get what he needs by just refinancing?
I think the main purpose of his rehab he wanted to do was to prep things to conform to his tenants needs. So the building the way it sits should appraise for enough to get a better LTV by just doing a refi with some cash out?
Just thinking out loud??? Talk to me baby…am I dreaming here or couldn’t this work for him?