If you, like many investors, are sitting on a ton of equity, but haven’t been able to make use of it, here is your chance! I work with bunch of investors that own properties that are free and clear of any mortgage. The cash flow is great, but in order to take advantage of this great buying opportunity, many investors want to pull some cash out! Another scenario I often see is that investors buy properties for cash and want to refinance them immediately to get their cash, or a partner’s cash, back out.
So, how can we do that? There are two programs currently available for investors. One allows cash out on 1-4 family investment property up to 70% loan to value (LTV). If the investor owns up 10 financed properties we can do that mortgage for you IF you have six months PITI (principle, interest, taxes, insurance) reserves for EACH property. The reserve requirement drops off if there four or fewer financed properties. Two things to note here; 1) if you plan on doing any purchasing, the order in which things are done can make a huge difference and must be considered and 2) The reserves can be vested retirement funds as long as they allow for emergency withdrawals for mortgage payments, and most do. You must have owned the property for at least 6 months in order to us the appraised value.
The second program is rightly named a deferred financing program. This program is for the investor who purchases a 1-4 family with cash and wants to recover that cash quickly. There is no minimum time you must own the property, but the cash out is restricted to the total purchase price and initial closing costs. The appraised value is used so if any work is done that is taken into consideration. The maximum LTV is still only 70%, but there is no waiting period of six months to begin the process. This allows investors to take advantage of cash deals that come along without the, sometimes arduous, task of waiting for a lender to close the deal.
Combine the two programs and you can purchase up to 9 investment properties using one free and clear property to start the ball rolling! Use the equity in your home or a hefty 401K loan to kick it off and you’ll be the Real Estate Mogul you always wanted to be!
I know in our area of upstate NY, Saratoga Springs, Malta, Albany, Troy, Schenectady, and Saratoga County we have several great investment property opportunities waiting for investors to pounce! Take advantage of today’s low interest rates, copious amounts of inventory and the expertise of our Originators at Victory Funding 518-899-7700 (www.victoryfundingonline.com) and Realtors at Living Well Realty 518-899-5000 (www.livingwellrealty.com) and pursue your Real Estate dreams!
