Archive for April, 2008
Investment Property Fair Value
Getting equity out of an investment property owned by an LLC?
I started an LLC last year to invest in/build homes and buy up land properties. I purchased a land lot with cash and paid a builder to build a home on it. However, as sales are slow at the moment, I don’t want to sell the home below its fair value. Instead, I’m going to rent it out. But I want to get money out of the house so that I can build another home and/or buy more land.
How can I find a lender who will let me get cash out of this rental property? I want to get a mortgage in the name of my LLC. But the LLC has no past sales or financial history — all it has on its books is some cash (call it X) and a property valued at, say, (10X).
Also, how much of a mortgage do you think I’d be able to get and at what rate? Should I expect to be able to withdraw 70% of the home’s appraised value?
You’re looking to do a cash out refi. I just did that. I pulled out 75%. It’s not easy but it’s possible. If it’s just a single family home, check out lendingtree.com and select a cash out refi (it’s one of the options)
Income Property to Cashflow in Detroit Michigan Rental Property buy and hold
