This tip would generally apply on real estate investors. If the appraised value is at $500,000 and you are purchasing it for $400,000. There is a $100,000 built-in equity.
What you can do is to use a short-term money source as down payment to purchase the house at $400,000. And you follow one of these second steps:
1. Refinance the property with a new appraisal and get your money back. This method is mostly adopted but is not the cheapest way because you incur new legal fee.
Here is the trick.
2. Do a “global” registration mortgage. This mortgage is registered differently from other mortgages. Long story short, you are able to raise the loanable amount by showing the appraisal WITHOUT incurring legal fee. The extra money also has the flexibility of a line of credit if you choose so.
Ask us about this program!
Filed under: FAQ, Zero Down Mortgages
