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Cash-Out Refi Program

We have a product where investors who purchase foreclosure property to buy, fix and rent can easily cash-out refinance their investment property. Watch this short video about the process. To learn more contact us for specific details.

EXAMPLE

  • Foreclosure Purchase Price: $80,000
  • After Rehab Value (ARV): $136,000
  • Rehab Estimate: $20,000
  • Rental Estimate: $1,400
  • Taxes $3,500

Step 1

Get pre-approved with our mortgage banker for the refinance of property you intend on purchasing.

Step 2

Once pre-approved, meet with the commercial banker for purchase loan.

Commercial Loan
Purchase Price $80,000
Rehab Est. $20,000
Total Acquisition Cost (TAC) $100,000 – This is loan amount.

  • Borrower deposits at bank $16,000 (20% of Purchase Price) held in a CD.
  • Borrower deposits at bank $20,000 (100% of Rehab) held in a CD.

Total Amount in CD = $36,000

  • At the purchase closing buyer is given a check for rehab amount $20,000.
  • 12 Month Loan
  • Interest Only
  • 6.50% Rate

Step 3 

Get property remodeled.

Step 4

After property has been remodeled our mortgage banker will order inspection by appraiser. (NO SEASONING REQUIRED)

Refinance Loan
After Rehab Value: $136,000
Max Loan To Value: 75%
New Loan Amount: $102,000
Payoff of Commercial Loan: $100,000
Money Left Over $2,000 (Room to roll in closing costs)

  • 30 Year Fixed
  • Principle & Interest
  • 4.875% Rate

 

Step 5

Upon completion of refinance loan, commercial banker will release $20,000 (20% of TAC) CD. You can now use these funds again to purchase another property.

Step 6

Rent property using our team at www.ChaseRental.com

Cash-Flow Monthly
Principle & Interest: $539.00
Taxes: $291.67
Insurance: $70.00
PITI = $900.67

Rent Collected $1400.00 – Mortgage $900.67 = Positive Monthly Cash Flow $499.33

THE RETURN ON INVESTMENT (ROI) IS INFINITE AS YOU HAVE NONE OF YOUR MONEY TIED UP IN THE PROPERTY.