All Forum Posts by: Matt Koury

Hi Guys! Quick question, when wholesaling a property, will the due diligence be performed by the wholesaler or the cash buyer? In other words, will I sell the contract to the buyer with the due diligence already done, or will the onus be on the cash buyer to arrange for this? Would appreciate the help!

Thank you for your replies. 

I understand the processes explained here, but how does the HML get paid back?

In other words, at what stage does the HML get paid back once the property has been rehabbed and refinanced?

You speak of refinancing the hard money into a more traditional loan, how does that work?

Also, what is the difference between rates and points?

@Sean Blomquist @Stephanie P.

@Stanley Parsley

So let's say hypothetically, I'm buying a property for $100 000. Would you generate the full $100 000 from a private lender?

Hi Guys

I'm a newbie and I'm confused with regards to the BRRRR strategy. If I'm looking for financing, do I use hard money to purchase a home, complete rehabs etc and then refinance using the bank's loan and to pay back my HML? Or can I get a mortgage, use hard money for my down payment, rehab costs etc and then refinance that mortgage to recover costs and pay back my lender?

Any help would be appreciated! 

No, I will use my own cash for down payment, and hard money for the purchase. It will be my first deal, but I'm looking for a lender that's already in the game and has the funding I need. I rate this is my best bet in getting finance, and possibly some guidance on whether the deal is good or not, considering an experienced lender in RE won't finance a deal that looks dodgy.

Why do you say I need a LLC to close with a HML?

Noted, definitely will get pre-approval on a refinance loan

@John Leavelle

Perhaps that is something I need to try, thank you for your response!

Hi BP'rs! 

I'm a new investor looking to get started in RE but I have a question regarding refinancing when doing a BRRRR ...

When refinancing the home, is there a way to estimate your closing costs and fees etc? Also, what is the average that the interest rate changes by when you refinance? 

I feel these are critical things to know when analaysing a deal. 

Any feedback would be most helpful!

Thanks @Michael Ristom All the best to you too!