Rental Property Investor · Springfield, OH · Member since 2018 · 6 posts · 0 votes
I am considering taking a personal loan (20% interest @ 5 years) for a nice house that is going up for auction next week. This is a cash only deal, with lots of potential. My plan is to BRRRR. I'd like to find a hard money lender, but instead have opted for a personal loan until I can refinance out of the loan and into a comfortable 15 year mortgage, or even better do a cash out refinance if possible. Anyone have any similar experience with this, and want to share your stories, tips or advice? Or possibly point me in the direction of hard money lenders?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y
It's fairly straight forward....either you qualify for a traditional mtg or you don't. If so, you can refinance immediately for the same loan amount as your private money....assuming the appraisal meets the LTV requirements.
If you want a larger loan than your private loan then you need to wait 12 months, with the same requirements.