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Leaving money in the deal and refinancing.


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Hi all,

Just looking for a bit of advice regarding BTL investments. I am trying to calculate the amount of money i would leave in the deal until such time that I can refinance and try to pull some of my money back out. I am hoping to buy 3 or 4 properties soon but I feel that I would stuck after that as all my cash will then be tied up.

Firstly.. Is it realistic to expect to pull all or most of your initial investment out of the deal? I am struggling to see how this could be achieved even with the properties that need refurbishment. I have found that the refinance only covers the original loan and part of the refurb costs. Is there an 'acceptable' percentage to leave in a deal?

Secondly... Some people I have spoken to have said you can refinance after 6 months and 1 day, some people have advised against this? Is there any implications on my credit score if I refinance after only 6 months? What are the down sides regarding this?

 

Any help or advice would be greatly appreciated,

 

Steve C

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  • 5 months later...

This is a fairly standard question that comes up all the time. There is no 'ideal' answer and it depends on a number of things inorder to get all/most of your cash out

1. Major refurb needed

2. Small extension/loft conversion/layout modification etc added

3. timing - I normally wait 9 months which means its about a year by the time the re-finance is done

4. Be a cash buyer

If you don't have all of these then the onl;y other way to get all your cash pout i sto buy well below market value (very difficult thesedays). The less you do and teh quicker you do it, the more cash you have to leave in the deal

Thats my experience form my 6-7 projects

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