BRRRR - Refinance Question if Shopping for Rates

BRRRR - Buy, Rehab, Rent, Refinance, Repeat

BRRRR - Refinance Question if Shopping for Rates

Member since 2022 · 5 posts · 2 votes

Hello BP Community! Newbie real estate investor here looking for some insight on the Refinance step of BRRRR.

I am planning on buying a home cash and utilize delayed financing for the property. Given the interest rates, I want to shop around different lenders to get a better rate. Given that this is delayed financing, would every lender I reach out to have to conduct their own appraial or would I have to get an appraisal on my own and reach out to the different lenders with the completed appraisal?

I can see pro's and con's either way but wanted insight into "how it is usually done".

Hope to get some answers and thank you in advance!

-David M.

0 Reply

22 views

Most Popular Reply

Matt Cartwright

Lender · Newport Beach, CA · Member since 2016 · 68 posts · 18 votes

@David Moon Hi David, you should be able to get a letter of intent or something in writing showing what the terms will be from each lender before the appraisal process begins. You are definitely able to shop rates without ordering an appraisal with each spot!

2 Reply

See this reply in the discussion

6 Replies

Jump to latestLatest

Sort by

Nathan Murith
Investor · San Rafael · Member since 2020 · 376 posts · 274 votes
4y
@David Moon welcome to BiggerPockets and congratulations on doing the work.
We have done what you describe several times. I love the competitiveness of the cash offer and ability to do delayed financing right after. In our case, and very typical, the lender will order their appraisal for the loan.
Happy to discuss more or share any other tips, tricks, tools and resources we have and love to use. If you are interested, please do not hesitate to reach out, connect, and DM me.
0 Reply
Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
4y
@David Moon yeah, the lender will likely use their own appraisal here. Now, there are several nuances to what you are trying to do. I wrote an entire post on this subject for Bigger Pockets that you can read HERE. Pay attention to the 2nd section. That will address the nuances. Certainly here to help with any other questions. Thanks!
0 Reply
David Moon
OP
Member since 2022 · 5 posts · 2 votes
4y
@Nathan Murith

Thank you gents for your responses! Sounds like lenders will do their own apprisals and I could end up having multiple apprisals done if I shop around with different lenders.
Appreciate the help!

0 Reply
Matt Cartwright
Lender · Newport Beach, CA · Member since 2016 · 68 posts · 18 votes
4y
@David Moon Hi David, you should be able to get a letter of intent or something in writing showing what the terms will be from each lender before the appraisal process begins. You are definitely able to shop rates without ordering an appraisal with each spot!
2 Reply
Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
4y
Quote from @Matt Cartwright:

@David Moon Hi David, you should be able to get a letter of intent or something in writing showing what the terms will be from each lender before the appraisal process begins. You are definitely able to shop rates without ordering an appraisal with each spot!

What Matt said. You can shop rates and get an idea of who will have the best rates and terms, but then when you're ready to refi, you choose a lender who then orders their own appraisal. They won't use your appraisal.
[email protected]Podcast Guest on Show #261
0 Reply
Steven Goldman
Lender · PA · Member since 2019 · 535 posts · 461 votes
4y
Quote from @David Moon:

@Nathan Murith

Thank you gents for your responses! Sounds like lenders will do their own apprisals and I could end up having multiple apprisals done if I shop around with different lenders.
Appreciate the helpfor a lnder

David, you need to do lender due diligence first. The lender you select will order the appraisal. You will pay for it. Appraisals are not inexpensive and you will not benefit from multiple appraisals. The appraisal establishes the maximum loan amount from which the LTV is derived. If you are trying to determine the value of the property you need to find a reliable real estate agent and have them give you an option of value as well as, learn to research values yourself. You need to know that for both the purchase and the after repair value if you are BRRRRing.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.