BRRRR STRATEGY (paying on the interest)

Buying & Selling Real Estate
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BRRRR STRATEGY (paying on the interest)

Tereak Sims
Member since 2018 · 42 posts · 3 votes

My question is when do you start paying interest on the loan from the private lender??

Do you pay the interest when you get the refinance loan?

Or does it depend on the contract ?  

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Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
Originally posted by @Rich Hupper:

Hi @Andrew Syrios

What is it called when a borrower who has a heloc pays their monthly interest payments with the heloc itself?

 Unsustainable...

Podcast Guest on Show #121
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  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    8y

    It just depends on how you set it up. We pay it monthly, but others do it with a lump sum when they pay the loan off. It depends on what you want and what your private lender is willing to accept.

    Podcast Guest on Show #121
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  • Rich Hupper
    Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
    8y

    Hi @Andrew Syrios

    What is it called when a borrower who has a heloc pays their monthly interest payments with the heloc itself?

    0Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    8y
    Originally posted by @Rich Hupper:

    Hi @Andrew Syrios

    What is it called when a borrower who has a heloc pays their monthly interest payments with the heloc itself?

     Unsustainable...

    Podcast Guest on Show #121
    2Reply
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