Getting money back out? - Posted by Brian

Posted by David Alexander on April 21, 1999 at 10:26:25:

First, you always have to know your exit before going in. Did you buy this property to hold? I don’t buy property to hold so my strategy is alittle different, but here goes.

Sell the property for a little above the top of the market with Owner Financing, should be able to get at least your 10k back out of it. You’ll be getting a cash flow spread for the difference in equity. After you have some other people in the house get them to refinance ASAP(Cash Incentive, Vacation, Color TV, whatever it takes), to cash you out. Before you put just anyone in the house, have a good mortgage broker lined up, to check em’ out before hand to make sure they’re refinancable.

David Alexander

Getting money back out? - Posted by Brian

Posted by Brian on April 21, 1999 at 09:27:23:

I am trying to find a lender who will give me a equity loan on a property I just closed on 4/16/99. Thay all tell me I need to hold it for 12 months. Are their lenders out there who will do this deal before 12 months? I put down 10,800 which was borrowed and needs to be paid back. Purchase price was 72,000. The house was a forclosure in great condition. It would appraise for approx. 90-100k. I can’t see why I am having such a hard time since the LTV is low. I have a 61,200.00 mortgage on a house that is worth 90-100k. I am looking for 20,000.00 that’s all. One lender said they could give me the difference of the purchase price to the amount of the loan which is what I put down, But I need at least 15-20k. This is not my primary residence its my first attempt at investing and need the money to move on to bigger better things. Any help or Info would be greatly appreciated


Re: Getting money back out? - Posted by gwl

Posted by gwl on April 22, 1999 at 12:48:59:

I do this everyday with a local bank. It is very hard to get anything like this done with a mortgage company, because of seasoning. I have worked out a good relationship with a local bank that refies immediately (within 1 week of the original closing) if I so desire. They offer me 80% ltv with cash out @ 8% with a 15 year amort. and a five year balloon. (in-house loan). I typically resell these properties with owner financing/lease to own with the total principal due in 12 months so the bank’s 5 year balloon is never a factor. I have worked out a deal with a mortgage company in the area that guarantees that they will refinance the properties for the tenants after 12 months of payments from them to me. It just takes some searching and it also takes talking to someone who can make decisions without having to ask permission to loan money. I like dealing with the President or at the very least the Vice-President and Senior Lender. I also deal with the President of the mortgage company when I send my tenants for their refinance. This allows me to pay out of my pocket and immediately get it back with a sizeable bonus. It all depends on how you buy the house and who you deal with.

You might have to sell - Posted by Sean

Posted by Sean on April 22, 1999 at 12:10:08:

I know what you’re asking for, it’s called an unseasoned refinance. Unfortunately I don’t know anyone in my area that does them, nor anyone in your area period.

Don’t rule out any options including selling. You might wish to check into the rules regarding an exchange or 1031. I don’t know anything about it, personally, except that it’s a great tax saver.

Re: Getting money back out? - Posted by Bud Branstetter

Posted by Bud Branstetter on April 21, 1999 at 18:27:41:

I have empathy with your plight but I am not aware of any at this time that will do an investor cashout sooner than 6 months short of a commercial loan. And after that the rate is several percent higher than you probably have.

Maybe I should admonish you for borrowing the money for the down payment before knowing how you would get it back. But you will make money. It would seem that the best out is a retail sale. Get an occupant that can qualify for at least an 85% loan. I would also urge you to build up cash by doing flips or L/O’s so that you do not have to borrow money.

Re: Getting money back out? - Posted by BR2

Posted by BR2 on April 21, 1999 at 11:31:48:


I had the same problem on a property I bought in December. I don’t know what state you’re in but you might want to try UC Lending.

Sorry, but all I have is a Michigan # (248) 816-1990. It never hurts to call…

Good Luck.