Buy/Rehab/Refi with notes?

Question

Anyone ever apply the Buy/Rehab/Refi strategy to notes?

Bob E. · Answer

Doing a Refi with notes will be tough.  A not investor is not going to finance you at 4%, more like 12-14%.  It can be done but you have to have a lot of margin in the deal to pay that kind of rate and still cashflow yourself.

Scott R. · Answer

That's not really what I was getting at. Sorry for the confusion I should have been more clear. If you were to apply that strategy to notes it would be more accurate to call it Buy/Mod/Hypothecate if you wanted to be literal. Not nearly as catchty.

Though if a workout isn't possible, foreclosing, rehabbing, renting it out and refinancing would be an obvious backup strategy.

I have seen some posts on BP before about recapturing the initial investment by selling partials.

James Treby · Answer

i like your strategy.  I am trying to do the exact same thing.

Bob Malecki · Answer

It would be more like Buy Note/Foreclose/Rehab/ there is no refi since you own the property outright, but you could then get a loan on it and use the cash to buy another note and repeat the process.

Don DeMarco · Answer

Are you talking about rehabbing while the HO is still in the house? Because in order to rehab you need to foreclose and be on title and if you foreclose and get on title then you have no HO to refinance???