Cash Out
OK I am a rookie at anything more than a duplex or single family so I have a question. Lets say I purchase a 12 unit apartment building for $800,000 and put 20% down which is $160,000. How or at what point can I cash out that $160,000? Is this even possible or can I maybe take atleast 10% out?
Thanks
There are a number of ways you can accomplish the cash back at or just after closing. There can be a side aggreement with the seller stating anything over XX has to come back to you, essentially overfunding the deal. There can be a second in place by the seller that again would be overfunded and cash returned. There could be a loan in place where all you have to do is show the money at closing rather than give it up. There could be rehab monies coming back to you from the seller at closing.
Or you could use the extra equity that you will have as a cross collateralization for your next deal. You could agree with the lender that there will be no payments for the first XX amount of time collecting your monies back to be liquid again.
There are many more ways, but thats all I could think of at the moment.
Good Luck,
Kyle