Financing Structure on a BRRR Deal (Newbie needing help)
Hello there! I have never done a BRRR deal and am a little lost on the financing structure, allow me to explain...
The list price is 77k (negotiable) and the ARV is somewhere in the realm of $115k. Repairs approx $10-15k. Repairs will take 6 - 10 weeks give or take.
I would like to BRRR this guy but here is my hold up. I am unsure of how loans and such work in this scenario.
From what I understand I can get a hard money loan to finance the home & repairs, correct? I've never done hard money loans - so how much will I need to put down? I've heard before that hard money lenders will also give a few months with no payments. Is that true or is that hogwash?
THEN
After I do the repairs, would I just get a standard 30 year loan and that will pay for my hard money loan?
I'm just missing the link where I am seeing people get their entire down payment back. Won't the traditional lender still charge a down payment on a refinance?
Is my question making any sense at all? Is it obvious that I'm slightly lost?
HELP
- Blake