Cash Out Refi
Is it possible to pull cash out of a property owned free and clear for 6 months that is based on the appraised value and not the purchase price?
Is it possible to pull cash out of a property owned free and clear for 6 months that is based on the appraised value and not the purchase price?
By the way, using the bank code in the first column, you can get detailed information about the bank from this page:
Great information on finding lenders for commercial deals and finding out details on the bank.
I was wondering the same thing as previous poster as to whether or not anyone is aware of lenders doing cash out refinance less than a year on residential investment property based on the higher appraised value instead of the lower purchase price.
Thanks in advance for any information.[ Edited by JohnLocke on Date 01/13/2010 ]
As far as my prior posts go regarding financing, all of the property is used as residential (1-4 family), non-owner occupied. The entity holding the property is a NC commercial, for profit, Limited Liability Company (LLC)
How I would do it: The lender is going to get a courthouse recorded second DOT as a security instrument with a principal amount of $100K. The note will spell out the terms (interest amount, payment terms, etc.) and should indicate the payout of the equity (if any after X months) in the equity sharing arrangement.
Right. But does the equity sharing agreement get recorded with the DOT, or is it part of the promissory note?
in the partnership/shareholder or llc agrement
There is no partnership or llc, these are private lenders and private lenders only. So, back to my original question, Should I add it to the promissory note, or as an addendum to the PN, or should this be a completely separate document?
Apologies for the delay. Answer #1) Check with a WA attorney. My state laws may not pertain to your situation. In NC the security instrument is recorded. The Note is generally not recorded, but contains payment details (interest rates, term, paybacks, etc.) and would spell out equity considerations. #2) Search for other similar "services". One I found, although it looks like they may be out of business now, is Home Equity Share (http://homeequityshare.com/ ) where they provide a "blueprint" for people to jointly buy property and share ownership.
I am trying to do something similar described in http://www.thecreativeinvestor.com/ViewTopic65925-46-2.html Any feedback would be appreciated.
globalvillage, what ever happened with this?
My attorney recommended that I do not do any equity sharing since it convolutes the deal and may possibly breach security laws if not set up properly.
My goal was to obtain a lower note rate to keep my payments lower during the term of the private loan, but give my lender an incentive to loan to me. My attorney recommended giving the private lender a higher APR, but defer some of the interest to the back end.
This is what I did, so I have a note for 10% with my lender, but my payments are based on 7% annualized simple interest and the remaining 3% interest is deferred to the end of the term, meaning that the lender will get their principal + 3% interest which was deferred over the term of the loan. This way I was able to keep my debt service lower, while still giving my private lender a good return.
highficos, I think you posted on the wrong thread...