All Forum Posts by: William D.

BP!

I want to purchase a MF from someone, I want to offer 20% down but have them hold the mortgage like they’re the bank. I’d like to explain to this person the pros and cons of him holding the mortgage himself with no banks involved. What rate should I expect him to get in return?

Pros

Cons

BP!

When you refinance a BRRRR deal at a 30 year mortgage, how does the payment on the mortgage work? Hopefully the rental income covers the mortgage and generates cash flow. However it's a 30 year mortgage for xyz amount. When you refinance you don't need a down payment correct?

@Kurtis Green

Great explanation, and entertaining. Haha. I’m going to dive in and get to work. Thanks Kurtis

@Chris Mason

Question, so after I refinance out of the hard money loan, I will pay the hard money loan off. But now I have a mortgage for the house with the new appraised amount, which will now be higher. So I have a 30 year mortgage for a higher amount. Does that sound correct? If so, how is that beneficial?

@Chris Mason

Love it. Thank you for clearing that up.

@Chris Mason

So the bank will give me a loan based on the ARV?

@Kenneth Garrett

Thanks!

So I purchase the property for 100k using hard money, repair the property, now it’s worth 200k. After that I go to a bank and ask to refinance, what does refinancing mean exactly? The bank will give me 80% of the value, then I would pay off the 100k from the hard money loan?

BP!!!

I'm having trouble grasping the refinance part of the BRRRR strategy.

I’m working on my 3rd deal, and I’m going to see if a hard money refinance strategy would work. The only issue is I am having trouble understanding the refi part and I have listened to 2/3 of the podcasts. Lol

If I purchase a property for 100k and after rehab it is worth 200k, how do I refinance and how does it work?

Not real numbers, just using simple numbers to help me understand.

@Brandon Penn

I wish I could like this post twice.

I’m right behind ya! Well, about 115 units behind. Haha

@Jake Stuttgen

I’m not buying the building, I purchased one unit in the building for a great price. It was vacant for years. I want to see if there are other units like it, vacant. How do I find that out?