How Do You Guys Recommend I Pull Money Out Of An REO?
I want to pull some money out of it once we aquire it to do a little cosmetic work before we sell it. Also I want use some of the money to buy another REO.
What do you guys think?
Thanks for any ideas and input.
Quinn
Depending on the equity ,a HELOC might work... especially if you're an owner occupant.
If it's minor rehab, you could always finance most of the work with your credit card then do a cash-out refi when the repairs are done and pay off your credit card and have some extra cash to invest in other properties. It's worked for me, but perhaps there are other techniques out there.
There is also an FHA 203K loan which helps you finance rehabs, but those government backed loans are a little to myred in red-tape for some. I'm sure there are some private loans out there that are less complicated.
Good luck with your new project!
If you can find a subject to lender, you could get the property appraised subject to and get your money in draws as you complete the work.
The cc financing is another good one. (If you have a CC with that much credit). I didn't.
I got with a handyman got a price for the repairs and ask if he would hold off on his pay (approx 60 days) until I Refinance and I would add a fee to his quote.
Did you ever get a subject-to lender to give you draws on the money? I just have never heard of that, but if it works sounds like a great idea.
REO is not a Subject 2 transaction in our neck of the woods. I guess you were thinking of something else there for a moment.
But as to the question. Your best bet is to shop around and find a good mortgage broker. If you have the creditscore, you should be able to refi quickly after closing and free up some funds for your next steps.
[addsig]
Hawthorne is right. I'm not thinking straight. It's late. Time to go to bed.
G'night.
There are lenders that do true rehab loans. The money for repairs are placed in an escrow account and you are able to pull money out as the rehab is taking place.