Conventional financing from traditional lenders, like banks, have stricter underwriting guidelines than private money lenders like Lux Loans…
We can fund based on assets rather than personal finances. With this model, we can lend fast! Moreover, we provide private loans to investors and borrowers with bad credit, helping them when faced with the following:
Start your cash out refinance process with these details:
In addition to the convenience of fast cash for your existing equity, another significant benefit is getting a loan through cash-out refinancing with a private money lender. The remaining cash left over is not considered income because it is from your existing equity, which means it is TAX-FREE!
Then you can then use this TAX-FREE private money 100% for your investment or purchase!
With Hard Money Cash Out Refinancing, you replace your existing mortgage with a new loan. The difference between the existing mortgage and the more considerable hard money cash-out refinanced loan is that the cash goes to you. Our hard money cash-out refinance loan rates are lower than your typical credit card rate, making it a more affordable option.
Let’s say your exisiting loan balance is $50k. A newly refinanced cash out loan of $100k would leave you a balance of $50k to use for your next investment.
And best of all, the remaining $50k is TAX FREE!
Let’s use another example with a little more math.
A rental property you own has appreciated in value and is now worth $200k. If the current market allows for up to 80% LTV (Loan to Value) on the cash out, then you can get financing for $160k. Your original mortgage balance was $150k, but you’ve paid the principal down by $50k. The current mortgage balance is now $100k. The new cash out refinance loan will pay off the current loan balance and leave you with $60k.
And, of course, this $60k is TAX FREE too!
Another great way to benefit from a Cash Out Refinance, is through Forced Appreciation. Let’s see how!
You purchase a new investment property with a Fix and Flip Loan from Lux Loans.
At the time of the loan, a conservative estimate of the ARV (After Repair Value) is $200k. The standard Fix and Flip loan is for 70% LTV (Loan to Value). The total loan amount is $150k, and your purchase price was $120k and $30k goes toward your rehab. Your total investment of $150k was built into the loan! Which means your out-of-pocket expenses were minimal.
Now that you’ve completed your rehab, you order the appraisal. Due to the changes in the market, as well as some great features you added to the home, your investment property appraises for $250k. Your new loan to cash out 80% of your equity will be $200k. Allowing you to pay off the short-term Fix and Flip Loan AND leaving you with an extra $50k!
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