When the homes are owned free and clear, the financing becomes easier for us to obtain for our clients. This was the case on these free and clear fixer uppers in Northern California. The owner wanted to get the maximum amount of cash-out within five days using a hard money blanket loan in order to go to the foreclosure auction to buy another fixer upper in cash to flip and then refinancing into our foreclosure auction cash recapture financing program.
In this scenario, the preliminary title reports and drive-by appraisals all came back within 24 hours. This meant that the loan docs were ready to sign within 48 hours. That’s the beauty of hard money financing for the real estate investors that have a strong working relationship with. Under the right circumstances, like this one where the client owned the properties outright, we were able to get the client cash in hand within five days.
Cash-Out Hard Money Blanket Loan Terms:
- $189,750 Loan Amount (75% LTV)
- 12-Month Term
- No Prepayment Penalty