All Forum Posts by: Steven Marks

@Tony Gorokhovsky that's what I had been thinking - that banks wouldn't want to lend on an empty property to be rehabbed - so thanks. I wanted to make sure I understood if the reason was something else, like that my understanding of refinancing was wrong.

And @Max T. also good points - I didn't realize closing costs were higher, and I wasn't thinking how buying with cash off the bat means I can offer less and close more quickly, giving me an advantage. Thank you.

@Annchen Knodt ah yes, that's what I was thinking was the main issue stopping people from using a conventional loan. Makes sense!

@Greg Scott thank you. I didn't know it was possible to refinance out of a hard money loan into a conventional loan. I also wasn't aware of the 6 month waiting period for doing a refinance after buying with cash. All good info for me to research.

I understand that if you buy a property in cash, rehab it, and then take out a loan against the property, you take more money back out because of the greater value of the property after rehab. Is it not possible to take a loan on the property in order to buy it, rehab it, and then refinance the loan against the higher value of the property? Is this not something that's possible, or easily done? My understanding of loans and financing is pretty limited.

(Question accidentally posted twice, body of question in other post).