I own 5 rental condos in Sacramento outright. Total value of about $200K and seeking cash-out refi to purchase more....any ideas? big banks dont care

Asked by Gabe, Charlotte, NC Wed Feb 23, 2011

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Bentley Advi…, , San Mateo, CA
Thu Feb 24, 2011
If you are not rate/price sensitive (i.e. rehab/flip, short-term bridge financing, etc), then you should have access to hard money loans up to 65% LTV. You may even be able to cross-collateralize and obtain a single loan for $130k. You would be looking at somewhere between 3-5 points and rates between 10-15%. Happy to answer questions. Good luck.
3 votes
Patrick O'Ha…, Agent, Citrus Heights, CA
Wed Feb 23, 2011
Unfortunately you will probably find that traditional lenders will not do cash-out refi's, unless the home owner's association is strong financially & has good owner occupancy ratios----a standard that a lot of HOA's do not meet. One way to test the waters is to see if financing is even available for buyers in your complexes. Currently many condo complexes are only being sold as cash purchases. We own in a few HOA's and find the ability to pull cash limited to one complex. Good luck
Patrick O'Hare Century 21 Select
1 vote
Keisha Mathe…, Agent, Elk Grove, CA
Wed Feb 23, 2011
If you own them outright this is probably not the market to sell. You have lost most of your equity at this point. If you are able, I would hold on at least a few more years (five more a least). What has gone down will eventually go back up.

If you are selling with the intent to buy, think about this, the market trend is still uncertain. So why sell what you own outright to possibly risk losing a little more?

If you can wait, I would hold on. Not what you were expecting but the old adage still applies, Buy Low, Sell High! :)

1 vote
Patrick O'Ha…, Agent, Citrus Heights, CA
Wed Jun 20, 2012
Michael, If you can cash out refi on $40k condos under those terms I have numerous
clients who will be knocking on your door.....of course next question is limitations
based on HOA, ie occupancy, delinquencies, litigation?
0 votes
Michael Smith…, , Roseville, CA
Wed Jun 20, 2012
Hey Gabe,

If you would like to discuss I would be more than happy to speak to you. My # is 916-813-4003. We are a Federal Savings Bank and we go lend on up to 6 properties If there is equity, I can lend up to 75% cashout refinance on each property.

Need a 720 score and must meet all other income requirements. All properties must be owned a min of 6-mos.

I hope that helps. Rates are around 3.875% (3.967% APR) for investor loans.
0 votes
, ,
Thu Feb 24, 2011
Tina if the properties are not financed it doesn't matter how many. If the borrower is buying a new primary residence it doesn't matter how many financed properties the borrower owns. This ruling is only on investment property purchases. Gabe's problem is the individual properties are too low in value for traditional financing.

Happy funding, Rudi
Web Reference:  http://www.umbocc.com
0 votes
Tina Deller, Agent, Citrus Heights, CA
Thu Feb 24, 2011
Wells Fargo is doing 125% refinance on your personal residence you could pull out some cash there, one thought. I had a client who wanted to buy a new personal residence and owned 5 properties out right. He gave a property to his father so he had 4 and he got the big jumbo loan for his personal residence. Later who knows maybe his Dad deeded that property back to him. Fun to try to figure this crazy market out. Good luck any more questions just email or call me.

Thank you,

La Tena (Tina )Deller
Real Estate Broker
Over 30 years experience to serve you
SFR -  Short Sale &
Foreclosure Certified
Century 21 Select Real Estate
DRE # 00611754

916-995-7921 Direct
916-242-4079 Fax
0 votes
Jim Walker, Agent, Carmichael, CA
Wed Feb 23, 2011
Get a high credit limit. Low rate Visa Card. Much cheaper and less aggravating than opening five escrows, paying for five appraisals and processing fees.
0 votes
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