All Forum Posts by: Pete Storseth

@Stephanie P.

Got it. Buy with hard money, refi with portfolio. Thanks

@Matt Hurley

Thanks for the info. That's answers most of my questions.

I'm likely to get the private money into a partners account who will be able to qualify better for the refi.

@Michael Plaks

Ok thanks. Makes sense that wraps wouldn't work like a 1031 exchange.

Just couldn't see how.

Also technically, if you're still paying your old loan, wrapping the new buyers payments around the loan, you still have a lien with the lender. You just have another note with the new buyer.

@Michael Plaks

If seller financing, you sell it in installments. So 20% of the income from the payments then go to taxes? When every month? At the end of the year? At the end of the term?

@Cassi Justiz

Makes sense

@Tamara Deering

I'll definitely use that marketing strategy for finding seller finance deals. It isnt my first option, because it is kind of more of a long shot than getting a portfolio lender to preapprove me for a certain value property. It has to be near enough to my job, safe enough to live, and I'd be looking for something with a detached garage or shed able to be made into a studio apartment. That way I can rent out the whole house, minus the garage.

Otherwise, I'm researching hard money too. That wouldn't be a house hack of course. It would have to be a cash flowing asset. But I may need more cash to get into that too, probably a partner.

@Oliver Carey

That's what I found this week. If I'm using private lenders to pay the down payment, what's the best strategy to pay them back? What's fair for terms to them? And should I just refi with a portfolio lender to get better interest rates or cashout?

@Cassi Justiz

When you bought the duplex seller finance, did you ever refinance to pay off the seller? I wonder if they would sometimes rather just get their payoff from the bank or continue collecting payments for the interest

I am trying to get into buy and hold rentals, and I'm in live with BRRRR. The beauty is the cash out refinance, with plans on investing the cash you originally put into the property into the next one.

Two questions

1. If you're using hard money, is cash out still possible? If so, when? LTV 70-80?

2. If you're putting private money into the down payment, but using a hard money lender instead of a bank, and cash out isnt an option, how can I pay the private lender back by refinancing into a new term mortgage?