Updated over 4 years ago on . Most recent reply
paying back investors
Hello all, I am nate and I am new to BP and learning about real estate investing. I have a question regarding on how to pay back OPM when doing a BRRR investment. I understand the refinance part and paying back the original amount borrowed, however Im not sure on the interest part that is owed. would I have to make sure I get enough from the refinance or pay them the interest over time or is it completely different for each situation?
I hope that makes sense.
Most Popular Reply
@Nate Kovaly Don't overthink this. Let's say you borrow $50k and accrue $2k in interest over the first 6 months. You will owe $52k to pay off the loan in 6 months... If you refinance and pull $50k out then you need to come up with another $2k to fully pay off the loan.
Don't let this hold you back from doing any deals.