Will This Work To Get Money For Repairs And Downpayment
My deal is as follows:
Home appraised at 63K
Seller needs 38K
I'm looking to pull 5K out for repairs and money for down payment which would still give me a healthy cash flow. How can I accomplish this. My agent continues to tell me that I can't get money back because the seller cannot report this on the hud statement at closing, but i know there is a way to get the cash.
one investor told me to take a 90LTV for the 38K. then she would loan me 9K which equals repairs, down payment + 1K for her fee/interest. then she would record the second mortgage on the property. after her loan is recorded i would then refinance and consolidate both loans for 48K. paying off the orginal mortgage and her second mortgage.
Does this work? Are there seasoning issues? Does anyone have better options?
Please help!!!!!
:-o
Is your "agent" a realtor or a mortgage broker/bank officer? You can do anything the bank allows. You need to find out what they will allow. Don;t ask them, though...
I've never pulled cash out at closing like this but I am very interested to hear what others have done. I have heard of things like having your company put a lien on the property for a reasonable amount. Check gets cut to your business at closing. As long as you are staying under the real value there shouldn't be a problem, right?
JohnCl
My advice is to seek out hard money lenders or rehab lenders in your area. For example, a few companies I work with will have you put down 5 -10% and they will release draws on the work., once the work is complete then you can refinance to pull cash out . Hope that helps.[ Edited by fredman226 on Date 01/13/2005 ]
JohnCI, let me see if i understand how the lien process works.
how would the lien process work? do the buyer have any protection from the seller or does this require the buyer to trust the seller.
thanks,