Self-employed borrower seeks jumbo cash out financing on free and clear property.
It is very common for self-employed borrowers to seek out Alliance Portfolio for hard money financing options because of the flexible deal making that we offer. In this case, the borrower came to us with a unique investment opportunity and was looking to get the maximum cash out of this free and clear La Jolla home. Due to the uniqueness of his request, he was unable to secure traditional financing that would provide him the cash out that he needed.
This is a common challenge for real estate investors who own multiple properties and want to cash out on the equity they have accrued. In real estate, we refer to this as being equity rich. Due to the non-conforming purpose of cash out financing, there are few financing options that provide cash out solutions. Commonly, borrowers will seek out a HELOC or an 2nd trust deeds to provide them the cash they need, however, HELOC’s have become less common and more challenging to get approved for. Additionally, HELOC’s often won’t provide more than $500,000 to the borrower regardless of their equity position.
Alliance Portfolio provides financing solutions to these challenge through a variety of hard money products. In the case study above, we provided a $2,900,000 1st trust deed with 36-month term. This provided the borrower the cash that they needed along with a debt amount that can now be refinanced during the 36-month term.
Another strategy we often use to provide cash out is second position financing. 2nd position financing is a less common financing product that is not available through traditional or non-QM loan products. The benefit of second position financing is that it allows a borrower to borrow the money they need while keeping their 1st position mortgage in place. By keeping the first position mortgage in place, they can borrow less money, pay fees on a smaller loan amount, and continue to make payments on their low interest first position loan. Second position loan terms are generally 1–5-year, interest only terms with a balloon payment. The most common strategy for borrowers paying of their second mortgage is to bundle the first and second mortgage into one new loan by refinancing their total debt amount.
Below is a list of common hard money cash out solutions that Alliance Portfolio provides.
- Non-Owner-Occupied cash-Out financing
- Owner-occupied cash-out investment purpose financing
- Property improvement cash-out financing
- Commercial cash-out financing
- Multifamily cash-out financing
- Land loan cash-out financing
- Business purpose cash-out financing
- First position cash-out financing
- Second position cash-out financing
- Cannabis cash-out financing
- ADU cash-out financing
- Self-employed cash-out financing
- Equity based cash-out financing
- Jumbo cash-out financing
If this Case Study has left you with questions or you have a loan scenario of your own you are interested in exploring with Alliance Portfolio, don’t hesitate to call us today! We are here to help with your unique financing scenario. 949-349-1322
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Contact:
ALLIANCE PORTFOLIO
120 Vantis Drive #515
Aliso Viejo Ca, 92656
Info@allianceportfolio.com
(949) 349-1322
http://www.allianceportfolio.com/
Real Estate Broker
California DRE
License #: 02066939
ABOUT US:
Alliance Portfolio is a Leading Full-Service, Private Hard Money Lender in California.
We serve borrowers who have unique situations that do not meet strict institutional guidelines while providing investment opportunities that are well secured and well underwritten with desirable returns on investment capital. Our services include private equity finance, hard money loans, bridge loans, fix and flip loans, cash-out financing, quick close loans and second mortgages on single family real estate, multifamily real estate, commercial real estate, light industrial, cannabis and land properties in California with an emphasis in hard money loans and private hard money lending in Orange County, Los Angeles, San Diego, San Jose, San Francisco, and the surrounding bay area.
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