All Forum Posts by: Sean Blomquist

@C-Dell J. if you buy with a loan through a Hard Money Lender, then the refinance isn't a cash out refinance, it is a rate and term refinance. They are only refinancing the loan amount plus the refinance closing costs. It is not a cash out refinance and you can't pull any cash out, unless you have the HML for at least 6 months. Then you just get another HML on the next one to repeat the process.

@C-Dell J. I'm confused by your questions. BRRRR stands for Buy, rehab, rent, refinance, repeat. If you are using your HELOC to buy and fix the property, then when you refinance it you are just paying the money back on the HELOC. Then you do the exact same thing on the next one. Buy and fix with the HELOC, refi to pay it back, etc...

@C-Dell J. you aren't cashing out 75% of the equity. The refinance loan would be 75% of the ARV (after repaired value). So if the ARV is 175k, then the refinance loan could be as high as 131,250. That pays off the 125k and covers the closing costs of the refinance. You may pull a little money out as well, but the equity of 25% stays in the property.

@Ralph Stowe it typically doesn't apply to flips.  The only time you may be challenged is if you buy a bank owned property and they put a deed restriction on it.  That means you can't sell it for a profit or encumber the property for more than a certain amount above the purchase price for typically 90 days.  I see fewer and fewer of these now, but they were more common a couple of years ago.  Other than that, you can turn it as soon as possible.  Good luck.

Depends on what type of property it is. Most times if it is an actual BRRRR, then you are buying a property that needs some rehab to build equity into the property before refinancing. In that case you can get a mortgage with a HML to acquire and fix it. Once rehab is done you can then refinance out.

@Dominique Mitchell send me an email directly and I can send you info on one in Feb.

@Spencer Lindquester you could always make the offer based on your numbers.  Then once you have it under contract, get a contractor in there to confirm those figures.  Do that right away though, because the clock is ticking towards close.

It may be tough to get a contractor to bid it before you have it under contract more than once or twice, if they aren't getting jobs out of it.

Hopefully that helps.

Good luck!

@Valentin Diaz most HML's will only go up to 70% of ARV. Once you are done with the rehab and have built the equity into the property, you can then do a rate and term refinance with a long term loan. I would suggest using a small community bank or someone that is direct to Fannie Mae. That way you can refinance right away and won't have to hold it longer like some lenders will require if they don't hold the loan in house.

The refinance lender should be able to go up to 75% of the new value, which will cover the HML loan and possibly your closing costs on the back end.

Good luck!

@Charles Smith I'm happy to connect and give you some more info.  Shoot me an email and we can chat more about what you are looking to accomplish.

@Brandon Keener not a dumb question at all.  I would suggest getting preapproved with a lender first, so you understand what their terms are and what they are looking for from you on a deal.  Then you can go out and find a deal for them to fund.

It will depend on the lender, but once you have a deal under contract, they will most likely what these details:

purchase

repairs

ARV

plan (flip or rental)

That would be a good starting point.  Good luck.