The meltdown.

[furnishedowner]

Thanks for the tips on re-financing a new purchase done with a credit line.  I'm guessing I have to go to my same bank for the re-finance, as I will want that credit line borrowing ability back.

I already have too many loans, in fact can't even re-finance my main residence.  The only alternative is getting a portfolio (bank keeps the loan in-house) loan from the bank.  They will cross collaterize it with our other loaned-on properties.  If one goes down, then they'll all go down.  But none of them will ever go into arrears as we guard our loan repayments and credit-worthiness.

Furnishdedowner

[John_in_NC]

Furnished.

You will have to wait 12 months to get that refi done. The waiting period is 12 months if there is no lien on the property (which there won't be because technically you are paying cash for the property). If you can put down 80-90% and finance the other 10-20% it will shorten your waiting period to 6 months. Also, because of the way you are doing it it will be concidered a cash-out which will make it more expensive. Make sure you have your exit strategy in place before you pull the trigger.

I sold a property to a guy (multi-millionaire from NY) who was paying cash but planned to REFI immediately. He took title in his name, but had the closing attorney put a deed of trust on file for the full amount of the purchase. The deed of trust (we use those here in NC) beneficiary one of his LLC's. All it cost him was the extra recording fee of I think 25 bucks.  That way when he went to REFI, it didn't look like a cash out. Which is much easier. Seemed like a neat trick I might use someday.

[furnishedowner]

Very, very interesting, John_in_NC.

Has anyone else here tried that little trick?

Furnishedowner

[andydallas]

my understanding is as long as there is a lien on the property you can refinance, it could be to  a friend or relative, but that would allow you to refi