Financing. Can You Add Equity?
I am looking to purchase a 4 10 unit buildings in a porfolio for 1,620,000. The properties aready have loans that can be assumed that equal 1mill. What I was planning on doing is to raise the price on the contract and get 2nd loans on each property 70% LTV which would be 620,000. Then leave the rest as equity in the building.
You can raise the price -all you want.....
The lender is going to look at the appraisal , compared to the sales price and what $$$ your bringing to the table.
Your lucky to have an assumable loan available. Why not simply get the owners to write you a note (second)-
in conjunction with your cash deposit contribution,
Record it in the county-and Refi @90% LTV immediatly.??
Or season it for a while to get a better rate
You could probally get cash out at Refi and an interest only loan @ a 3-5 yr lock rate