Paying back borrowed money

[Runne Gutierrez]

Hey guys,

I’m new to the investing side of Real Estate, I haven’t done a deal yet, and I’m eager to learn as much as possible.

One question that I haven’t been able to figure out is when you borrow money for a flip, how do you go about monthly till the deal is done? Do you pay monthly until the deal is done and then pay the rest off? Or sign a document saying that this amount will be payed off by so and so date? How does that work? And does it vary with what kind of financing you use?

Thank you in advance!

[Damaso Bautista]

@Runne Gutierrez

Those are called holding costs and need to be factored into your flipping plan or strategy.

To keep those loan repayments down many people pay interest only for a period of time until the flip is done the they would pay off.

Good luck!