OfflineThis was a long time in the process, but now that my team has done several, we have it down pat. The key is to finding and forming relationships with your key players, and the rest is just tweaking. Oh, and obviously finding great deals is part of the formula. 
(I might be adding to or updating this outline as I have time or get questions)
One way to get rentals in your hands with NoMoneyDown!
1. Find a lender that will do refis without seasoning. (try the small local banks first!)
2. Find a killer FSBO deal that has not been marketed (this is important for eventual appraisal)
3. Get it under contract for 45-60 days.
4. Having found a lender to work with prior to your accepted offer, promptly request a refi on the property (should be able to find one giving at least 75-80% cash out), as it could take 45 days for paperwork, etc. Ask for what the FMV is, or higher (appraisal will determine what they‘ll give you). You will KNOW there is that much equity before you make your offer to the seller.
5. Bank will order title work and appraisal. Appraiser can complete the whole report, minus the actual name of owner. Will keep on-hold til it goes in your name.
6. Once the bank has everything it needs to set a closing date, you set the closing date with your seller (your PA should say on or before the 60-day date you had set).
7. Double-close on the property if possible, with your end refi $ from the bank covering the purchase of the property. OR, if they insist you have the title recorded in your name before handing you the refi $, cover yourself with private or hard money (which you would already have lined up) for those couple days. I have done it both ways.
Not only do you ed up with a cash-flow property with NMD, most of the time you will walk away from closing with a good chunk of $ in your pocket too!
This is working fantastic for me right now, so thought I’d pass it along. And I know there are some of you that have already done this or have found even better twists. Hope to hear from you as well!
Rina
P.S. Thank you, Dean, for teaching us to think outside the box and keep tweaking things UNTIL they work!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Thanks Rina, that is one awsome plan. Your step by step instructions are well planned and easy to follow. your experience is pricless.
I think this can help a lot of people.
Thanks for the generous sharing of your formula.
Richie.
This is a powerful technique Rina. Thank you so much for being so kind and generous in sharing this info with us.
LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
I keep on reading all over again about your post Rina and I have 2 questions. Do you need a clossing cost out of your pocket on the first clossing? Do you use the same lender for the double clossing? Thanks
LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
One thing I forgot to mention is that you want to use the same title company for both transactions, therefore put "buyer's choice" in your PA. You will give the original PA to your title company when you lock up the property. They will start the title work right away. When the lender orders the title work (from the same title company) they will have already started the process, therefore expediting the order from the bank. Now, it has worked on some of my deals to do a simultaneous closing, where there is only one set of closing costs, and the end loan transfers all the way back to pay for the purchase. BUT if you have to do a double close, yes you will have two sets of closing costs, but it will be nothing compared to the benefit you are getting in the process (and especially because you have it built into your deal). The first set of closing costs will be minimal, as you are technically paying cash. The second set will include your appraisal and lender's fees, but nothing out of YOUR pocket because EVERYTHING (including your FIRST set of closing costs) will be covered by your refi. If you have lined up a great enough deal, you SHOULD be walking away with $ at closing. NOW you have a cash-flow property, with at LEAST 20% equity STILL included, monthly cash-flow (as much or as little as you have created), AND cash in your pocket. ALL WITH OPM!
Thanks for asking.
Rina
P.S. Hey, Richie!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Thank you so much Rina. A very Unique way to liverage your Equity with the aid of the right Loan Officer or Lender.
LA
Everytime you repeat the words "I CAN DO IT" with conviction, you cancel or override your fear and increase your confidence. By repeating this affirmation over and over, you can eventually build your courage and confidence to the point where you are unafraid. -Brian Tracy-
Your willingness to share details about your techniques is really appreciated. The whole principal of giving and it being given back to you is very evident in your life. Thanks again and I wish you much continued success.
We already have 10 mortgages, does anyone know of a lender that is willing to do mortgages for someone that cannot use fannie or freddie VA or HUD? We have a ton of free and clear properties and would love to be able to get at some of the equity but keep hitting dead ends. We want more properties but would consider selling some of our free and clear ones if we cannot get more mortgages.
Start checking with your small local banks. I was hitting the same wall until I came across their in-house product. They don't have a limit on their in-house loans. Are yours commercial or do they have personal guaranties (if that's the right word..)?
Commercial might be another route if you have enough cash-flow. If you don't really want to get rid of properties, I would say just find a way around it.
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Are you still using this strategy? I noticed the date which was awhile ago but it looks to have so much promise. PLease let me know when you can.
Kevin
SHORT TERM & Long Term GOALS
Expand my knowledge about REI and read 2 more books.
Never Give up and Succeed!
I want to share this with my dg fam
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M&N investment.
I have bookmarked this, How lucky we are to have you amazing individuals to show us the ropes with open hearts. When i am brave enough to concur the world of rental properties i will start with this strategy. It can eliminate you needing to find PM for long periods of time. You are awesome!!
Rina,
Thanks so much for this post! I am reading and re-reading this to try to duplicate. I have a few questions:
Step #4) You are getting 75-80% of the appraised value, correct? Not based on purchase price? I have talked to several banks and the best I can find for no-seasoning refi's is 70% of purchase price. Otherwise, it's 6 months seasoning to wait on basing it off appraised value. I guess I just need to call more!
Step #7) Where does the actual "double-close" come into play? The refi money is covering the transaction, but is there no paperwork financing trail for the first a-b part of the transaction? I'm a little confused logistically speaking on how this step plays out. Could you do a transactional funding on the first part if they insist on the title recording in your name prior to refi?
Are banks familiar with how to do a double close with only refinance money?
Thanks in advance if you can clarify this for me. Your time is greatly appreciated!
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
I am not rina but this is what she wrote about your step 7 question
7. Double-close on the property if possible, with your end refi $ from the bank covering the purchase of the property. OR, if they insist you have the title recorded in your name before handing you the refi $, cover yourself with private or hard money (which you would already have lined up) for those couple days. I have done it both ways.
If they insist the title be in your name get hard money, or a pml for a couple of days so your able to do so. You wouldnt be able to do transactional funding unless they can let you use the money for 2-3 days. Havent used the teqnuqie yet but once i do i will let everyone know!!
I think I'm suffering from False Evidence Appearing Real!! I'm getting bogged down in the details, when they are just that.
Sheila
"If God is for us, who can ever be against us?" Romans 8:31 NLT
Great Info. Thanks
http://www.theshortsalefunders.com. Transactional funding for CA, NV, AZ, VA, NC, FL, NJ, NY, & GA.