Updated almost 6 years ago on . Most recent reply
How to go from private money lender to mortgage
Say I purchase a house for $100,000 through a private money lender. They also contribute $25,000 towards repairs. ARV is $165,000. Once the home is ready to go on the rental market, how would I then put that home down on my own conventional mortgage with no money down? Is it common practice in this situation to get a mortgage for $125,000, to repay the PML? Then that would keep the mortgage at around $750/mo leaving more room between rental price and mortgage.
What am I missing?
What are other ways should I consider looking at this?
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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- Fort Worth, TX
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
@Jeremy Morton so if your REFINANCE step lender can lend 80% of the After Repair Value then you don't have to bring any money to closing. Just make sure they can lend that high AND that they will count the ARV of the property with NO SEASONING (meaning, no waiting).