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 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.
