Cash Out Refinance For Beginners | BRRRR Method Deep Dive

[@tahirisaid2693]

HELOCs and cash-out refis should ONLY be used as leverage for investing in rental real estate. If you have sufficient equity in your primary residence and you’ve done your due diligence and the numbers work out on a great deal, a HELOC is preferable as you can pay it off when your ARV (After Rehab Value) on the new acquisition is enough to refinance the total debt. Service that debt from the rental revenue and enjoy the residual net cash flow. Then use it again on future acquisitions. This is what I’m doing.

[@georgestone0123]

1. Avoid big banks for HELOCs (especially BOA) 2. Try smaller local banks & credit unions. (I use a credit union) 3. Filter your online searches to lenders offering HELOCs that accommodate your goals. 4. HELOCs should ONLY be used for short-term rental rehab capital. The intent is to force sufficient appreciation (ARV) to refinance the total debt with a new fixed, low interest, 30 year loan. The rental income should more than pay for the new mortgage with residual monthly cash flow and tax benefits. Repeat and scale to retirement net worth. Don’t give up! It works!

[@tahirisaid2693]

The only way I was able to scale through all of this without stress was by working with a financial adviser. My adviser *ROCHELLE DUNGCA-SCHREIBER* has always had my back all through the process of property investment and investing in general. You can glance her name up on the internet and verify her yourself. she has years of financial market experience.

[@jennvillari7340]

I have a $100,000 HELOC on primary just sitting (used a local credit union)… If I borrow from that to put a downpayment on investment property….. am I able to do the cash out refi and pay that portion back to the HELOC to satisfy that loan I’m very confused on what amount I will be mortgaging after the cash out refi… and after using that to pay back a PML and my HELOC will the numbers still work Is a cash out refi the equity in home that you do not pay back? Or you do payback but at a lower fixed rate? 🤦‍♀️

[@tahirisaid2693]

​@@jennvillari7340 like i said; The only way I was able to scale through all of this without stress was by working with a financial adviser. My adviser ROCHELLE DUNGCA-SCHREIBER has always had my back all through the process of property investment and investing in general. reach out to her for proper explanation, understanding and solution of whatever that confuses you !!

[@Darylarmour]

@@georgestone0123Absolutely amazing advice . Do you know if there are size requirements for apartment sizes for cash out refi? I’ve been told it’s difficult to refi if one bedroom units are less than 500 Sq ft? Is this true ?

[@powelldiesel7422]

My mentor shared that pro tip about meeting the appraiser at the site. It was nice to hear you cosign

[@TheFasterFreedomShow]

puts a person to the paperwork👍

[@maximizedmoney]

This is one of the best breakdowns of the refi step. My fear is that it appraises lower than expected but I think working with smaller banks, like you said, will be a better experience. Thank you!

[@TheFasterFreedomShow]

👉 Go to interestratestrategy.com to register for my FREE training that I'll be doing LIVE TONIGHT @7PM CST

[@Þunarr]

I haven't been able to pull money out of mine....

[@samplautz5586]

Found a foreclosed home for 150k below market value. Literally needs new floors and paint

[@TheFasterFreedomShow]

How did it work out?!

[@Thebombonlyone]

Dude I found one and it sold in less than a week. It was valued at 250k and selling at 150k

[@Percules15]

Where do you find deals?

[@DevinMostDangerousGantt]

You buy in person or online

[@wyattseidel4080]

Sam you’re awesome! My wife and I are currently rehabbing the duplex we just bought and will be following these steps to pay back our private lenders once done! You’re the best is the business man, keep up the awesome info

[@TheFasterFreedomShow]

Love the energy! Remember to have fun with it Wyatt.😁

[@MikeyBee-]

Hey, I’d like to know how this worked out for you. I just finished my first investment property.

[@wyattseidel4080]

@@MikeyBee- it went great thanks for asking! We rehabed it, put a renter in upstairs, we refinanced it with our local bank, then used that cash to pay back our lender. We currently still have the duplex fully rented out and my wife and I are in our own house now

[@ohitsjaelon]

@@wyattseidel4080hey man where did you find your private lenders if you dont mind me asking? im trying to do the exact same thing you’re doing.

[@coachyamyam9666]

Ok so I’m new to real estate: 1. Loan money to buy property 2. Loan money to fix it 3. Get 80% of appraised value back 4. Pay lenders Did I get it right?

[@DurtymaxJack]

Don’t forget the 6 month seasoning rule! Lots of little banks don’t abide by it, but some do. That’s a leading criteria for the refinance to work in a period of less than 6 months after purchase.

[@TheFasterFreedomShow]

It’s not a rule for small local banks. It’s optional. Most don’t have any seasoning period. Some do

[@ajgreene15]

GREAT video!

[@AnupamMondal.]

Thank you so much for this valuable advice 🙏🙏

[@TheFasterFreedomShow]

Fosho 😉

[@DJ-qu8oo]

Appreciate the jewels💎

[@TheFasterFreedomShow]

see you at the top!🚀🚀🚀

[@alfonsoaramburo]

Can you mention some of those small banks? I’ve gone to a few “small banks” and haven’t had luck finding those which offer that here in Cali 😅

[@TheFasterFreedomShow]

look up credit unions and community banks.. (these are local)

[@rakcityfitness3386]

Starting of the BRRR method to buy the my first property I have to use a hard, money, lender, or a private lender

[@beanlife02]

I’ve never done this and really want to get into it. What sites do I look on to find what other houses with similar specs are selling for to run my numbers? Also, what are the best sites to look at for houses to buy? There are so many and this can all be very confusing! Thank you

[@TheFasterFreedomShow]

Great Q! I recommend connecting with a agent that will help you run numbers and also joining local facebook groups to source deals for sale hat are "off market"🚀🚀🚀

[@ShawnMurray]

See, that's what I worried about. Coming out of pharmacy school with student loans messes up the debt-to-income ratio, but I also worried about my primary residence messing things up too to get started.

[@ShawnMurray]

If they look at your credit score, then what about all the dings if you're trying to do this multiple times a year or you doing it under an LLC?

[@TheFasterFreedomShow]

separate your credit from your LLC's credit and also remember that it's not so much about your ability to pay back the loan because ideally the asset you are buying is cash flowing enough to pay the loan back organically 📈📈📈

[@nicbradshaw9720]

This gonna change my life

[@luisfigueroa7851]

DSCR!!! What percentage would you say is a good base line? Thank you for the information!

[@TheFasterFreedomShow]

depends on your market. Thanks for watching 👍

[@ldelacruz22]

DSCR LOANS IS WHAT I'M TRYING TO WORK WITH RIGHT NOW

[@billionairep]

I want to do this

[@TheFasterFreedomShow]

Dm me on IG @SamFAsterFreedom Let's talk strategy 📈

[@sheilaeisert168]

What if you don’t make a lot with your w2 job. How do you refinance?

[@TheFasterFreedomShow]

look up DSCR loans. They are bank loans that take account the income the asset produces to help you qualify for the loan. A home costs money. a house MAKES money! DM me @SamFasterFreedom on IG if you have more Qs

[@allenscreen2143]

amazing video. so simple and yet so informative. thank you!

[@themixednomad]

This is was such a helpful video! May be silly, but I am wondering do you usually use the money from the cashout refinance to pay back the original lender or to brrrr another property?

[@TheFasterFreedomShow]

Always yes!!

[@ajaxborges]

What's been your experience with the Seasoning Period hat most long-term lenders have - when your doing a BRRR? I guess since your using DSCR refinance loans perhaps that Seasoning Period is not applicable...?

[@Ricebow11]

The refinance low interest rate, will that base off of your personal credit score, or I have an LLC that does play a role in any ways? What would be the base low interest rate ranges? Awesome video, I subscribed!

[@TheFasterFreedomShow]

Best thing to do is simply have that conversation with a small local bank..they won't bite😉

[@solarsolicitor9618]

So many gems.

[@CULTUREVULTURETV]

Where do you find the people who’s money your gonna use to buy the property

[@vch9665]

If I didn't have to borrow someone else's money but use my own instead, when I do the 80 cash out then I can use all that money for a next property?

[@TheFasterFreedomShow]

Yes you can always use your own money but that leaves you operating the 1-2 houses at a time. Where if you have access to OPM you can function at a much higher capacity 💯

[@troyfrazier9251]

Hello ,I own my home.I paid it off 5 years ago. It’s valued at $291000. I have a lot of other debts. I was wondering is there a way to get money out of my home? I was thinking of refinancing. What do you suggest?

[@TheFasterFreedomShow]

Hey Troy! I would lean on a financial adviser. *disclaimer But there is a saying "there's nothing more powerful than paid off real estate!" We say that because with paid off assets like that you have options! What option is best..well without all the factors I couldn't say what's best for YOU..BUT! I'd start to look into HELOCs, Debt consolidation, or maybe looking to buy an asset they will continue to go up in value WHILE it pays your debt off for you (real estate) I hope this helps

[@VictorPerez-qb2vr]

A little irrelevant to this video been watching your other ones but what’s the simplest way for a beginner to get started in rentals ?

[@TheFasterFreedomShow]

Go to FreeRentalWebinar.com 👈 when you're done with that DM me on IG @SamFasterFreedom

[@theanimeaccountant1472]

So let me get this straight because I am looking to do a BRRRR. All you have to do is fine a distressed property get a hard money lender to help you buy and fix said property. Once the house is fixed get it appraised, go to a bank ask for a cash out refinance and they will give you between 70%-80% of the value. Pay back the hard money lender and if there is any money left over either use it for more properties, or pay on the existing mortgage, or if not enough just pay back out of pocket? In this case what type of hard money lender should you look for, and what type of loan is this from the bank a convential loan?

[@TheFasterFreedomShow]

YES! Good question.. look for a HML that is local in your area (have reserves!) and when it come to the back end of the long term financing of the banks you can do it in your personal name but we recommend and teach our students in the mentorship to put it in the LLC that we help them set up!👍

[@ckkendrick7861]

Once you pay back the loan from the hml, how would you go buy your next property if you have no money left from the refi , do same thing over again

[@tameralynn7579]

Just the video I needed. The refinance step was confusing me

[@TheFasterFreedomShow]

I'm glad it helped! DM me on IG @samfasterfreedom I'll send you my free training to help you along the way!💖

[@melsimsrealtor]

As someone who hasn’t purchased any properties yet, primary or investments, which would you advise to purchase first? My thoughts are: primary first, and pull equity out to put into buying investments. But it would also make sense to purchase investments first since DTI wouldn’t be accounted for, pull out equity to purchase a primary.

[@TheFasterFreedomShow]

buy assets first and liabilities second!👍 maybe even mixing the ideas and getting into a owner occupied multifamily

[@godfearintrucker]

I bought my primary first then rental second. You can always move out of primary into secondary house and turn primary into first rental. But this means buying a primary that fits your needs and not your “dream home” just yet. We recently just used a Heloc on our primary home to do rehabs on investment property and start brrrr method.

[@ryanferguson9249]

Hi, Sam. When you say you pay none of your own money, how are you paying lender origination fees that usually have to be paid out-of-pocket?

[@TheFasterFreedomShow]

I use Private Money Lenders. These are non-institutional investors that lend based on relationship.

[@pabloray2562]

The only question I have is how long do you have to wait after purchasing a property to do a cash out finance?

[@TheFasterFreedomShow]

Sh!tty answer...But, "it depends" talk with your backend lender👍

[@pabloray2562]

@@TheFasterFreedomShow thank you for answering my question but I have one more question and that is in the BRRRR process why not just buy a house that is already been rehabbed and just rent it out that way ? Why spend the money yourself to get it fixed?

[@jeffheck4652]

dont forget about the Closing costs when REFI...5% at least..

[@TheFasterFreedomShow]

DM me on IG @SamFasterFreedom "FREE" I'll send yo a training to help you get started and we can talk strategy 👍

[@mram7715]

Do you need to rent it out before your refinance it? Or refi right after you finish rehab? Thanks

[@ham34480]

So where does the upfront buy money come from? Hard money lender? And if so where do you find them?

[@TheFasterFreedomShow]

HML or PL! either way you will want to reach out and find out their qualifications.. usually they are looking more at the deal and less at your personal qualifications..they make money by lending money...so they want o be found just google.smile.and dial!👍

[@mrfooze3264]

Ok so i was thinking, Besides getting a hard money lender, me and a bunch of buddies put money together ,we purchase a property [fourplex/duplex]on a 10-20% down-payment, then we put a bunch of tenants that pay for the mortgage,expenses etc then we refinance the property into different properties for each one of us . Do u think its possible?

[@TheFasterFreedomShow]

..VERY💪

[@ronhau1542]

I have a question. I used the equity in my residence to buy a rent house. I don’t have a mortgage on the rent house. If l use it as collateral to buy the next one. The bank will only loan me 80% of the value of my current property. I have to use that 80% to purchase the next house pay for the closing cost and the repairs with that 80%? Or do I get a mortgage on the second property also and just put 20% down that I got out of my first property?

[@vickbynum9086]

What If you own your house and try to do Cash out Refi to fix up property? Is that the proper step or should someone do an FHA LOAN?

[@DinaCalderon-g6q]

Im currently trying to get an investment house refinanced but some local banks are saying the property has to be in my possession for at least 12 months. Why is this happening? Or am I doing something wrong?

[@patienceisalifesaver9582]

What are things to look out for? Does closing cost matter? What to be careful of?

[@Homes4homies]

My aunt has 2 houses that are completely paid off, both houses need work done that would surely raise their value, so I guess you could say the have room to grow. I've been trying to explain brrrrs but she doesn't get it and since I haven't done this and don't fully know exactly how it works especially since there is no mortgage she still is struggling and her properties are struggling. What would you suggest? What are her options?

[@TheFasterFreedomShow]

Depends on what your goals are for these properties.. DM me on IG @SamFasterFreedom and we can talk strategy👍

[@nickpoint]

Do you prefer small credit unions or "banks"? Or same in your eyes?

[@TheFasterFreedomShow]

small local banks credit unions and community banks👍 (no wellsfargo, bank of america, etc.)

[@Transparent_Gaming]

Do you have any private investors? or are you a private lender since you’ve been in the real estate game for a while? I have great deals i find but can’t find any private lenders unfortunately. Thanks sam.

[@TheFasterFreedomShow]

Tonight I'm hosting a Live FREE Training @7PM (CST) ALL about private lenders.. 👉 go.freeopmwebinar.com 👈 Hope to see you there!!

[@MitchReshetar]

Hey Sam, great video! I am a college student with part time income. I am hoping to find a PML and do a BRRRS deal sometime in the next year. Since I don't have a salary job am I going to get rejected by a small bank when I attempt to refinance?

[@TheFasterFreedomShow]

that will be a challenge yes.. I recommend finding a back end partner that will help you qualify or find a mutlifamily for you to live in one side of it and use the income from the property to help you qualify for the house👍

[@BLACKFEATHERFITNESS]

Yes but who gives you the money to start if not the bank...

[@abrahamgomez3484]

I'm surprised how many people fall for this. This was a good strategy, it is not anymore. The rent market will dictate everything not the property value. Who would refinance 80% when your rent will not cover the mortgage?

[@anthonyc6249]

Best books you would recommend for Brrrr or real estate financing?!? Thank you!

[@TheFasterFreedomShow]

I have a playlist on my channel that walks you through everything with real life examples and definition of concept. But the best seller is the Bigger Pockets book that goes over the basic 101 understanding of the material. DM me on IG @SamFasterFreedom with any questions you may have!

[@DH.95]

What if you own the home outright and paid cash. Can you still do this in anyway?

[@TheFasterFreedomShow]

Paid off real estate is VERY powerful. You will have a lot of options💯

[@tanjamarkovic4264]

Sam, are you refinancing with your LLC? How long does the LLC need to be in business before you can do this? If you are.

[@TheFasterFreedomShow]

Yes. Refi in LLC. DSCR loan will help you get the financing as a new business 😉

[@tanjamarkovic4264]

@SamFasterFreedom amazing thank you. Planning on going by as many local banks to get to know their people. I just need to know what they offer and if they will work with me before I buy a deal. Thanks for your reply, amazing you still do this and don't outsource.

[@jlreactions1001]

Question sam? what if when you go to refi the property, because of the new mortgage amount , the property doesn't cash flow anymore. what can I do?

[@mikelopez4148]

How long can I refinance after I buy ?

[@mikelopez4148]

So refi with the private lender ? What am i using the small bank lender for ? I missed it 😞

[@kanaparthikiran]

what if the rent is not enough to qualify for the refinance? what options available at that point?

[@TheFasterFreedomShow]

The refi is based on the appraised value of the property once it is all fixed up and rent ready! You will want to be conservative with you ARV and 'high' on your rehab budget so you don't get yourself in a sticky situation. Find deals that have multiple exit strategies 👍

[@kanaparthikiran]

@@TheFasterFreedomShow thanks so much for your reply. sure, will change the exit strategy, great learning from you., I acquired 14 properties and counting following your principles.

[@HomesByJoe-x1y]

Hi Sam, great video! Thank you. I have and deal that I'm rehabbing right now. Going to use this method and go to a community bank. I'm considering putting the property on the Padsplit platform. Any idea if they will refinance it if that's the case? Thank you

[@TheFasterFreedomShow]

That will be something you want to take up with your loan officer💯

[@forextrader6246]

How did this deal work out?

[@carsenfredricks6012]

Doesn’t your home have to be payed off before refinancing?

[@srinivastangella]

How do I get the initial money to buy the property

[@TheFasterFreedomShow]

Looks like you found the private money video😉

[@bnutti2537]

As a first timer, is the refinance even guaranteed? Let's say I already have 2 mortgages but want to brrrr so I get private or hard money funding and buy/rehab then go to my local bank to refi. Normally, a bank will see that I've already got 2 mortgages (debt) and will be tough to refi and get yet another mortgage. Is this a possibility with brrrr? You said they focus on the property itself...is that guaranteed?

[@TheFasterFreedomShow]

have the end goal locked down before taking on the deal. Also keep in mind that the debt you are taking on with this rental property is looked at as an investment. Meansing your personal house costs you money. where as this rental will make you money..(easier decision for the bank!👍)

[@bnutti2537]

​@SamFasterFreedom thanks for the response 🙏🏽🙏🏽🙏🏽

[@brancomoran9440]

For how long do I need to rent the property and then refinance the property ?

[@TheFasterFreedomShow]

Depends on the bank, usually not too long . Month or two

[@tonyb6847]

I have a questions how do you get money for a rehab, do you take it out if the down payment?

[@TheFasterFreedomShow]

You can self fund, or use a hard or private money lender.

[@DeneenTucker]

Where does your credit score need to to acquire these loans?

[@kay8193]

Can you use a private appraiser or do you have to use the one the bank sends out?

[@TheFasterFreedomShow]

The bank is going to use their appraiser. I try to meet them there and have a packet prepared so they know all of the work I've done.

[@pabloray2562]

in the BRRRR process why not just buy a house that is already been rehabbed and just rent it out that way ? Why spend the money to get it fixed?

[@TheFasterFreedomShow]

Because if you buy a house all fixed up then you will be paying full retail price. Then you will have to come in and put 20% down😉

[@willwang5603]

Im having issues on my first BRRRR. Brokers saying my ratios too high to get a traditional mortgage even with rental income on my rental. Wtf thought that didn't matter

[@TheFasterFreedomShow]

*Hindsight* That's why I always say, "have the end goal mapped out before you start!" But at this point if you can't get it to work as a rental (And you've tried using all the smalll local banks in town) You might have to flip it and roll the cash in to the next deal

[@rez2046]

How can I calculate how much the refinance mortgage will be? I want to be sure I will cash flow before I begin the process

[@TheFasterFreedomShow]

DM me the word 'calculator' on IG @SamFasterFreedom 💯

[@calvinsparks9833]

What about seasoning?

[@diegopineda6074]

Do you negotiate with your private lender that the interest be paid after the Refi cash out or you paid the monthly interest to the lender while rehabing, renting and refi?

[@TheFasterFreedomShow]

all terms are decided on the front end👍

[@nicolewilson2379]

Can you refinance in your LLC?

[@TheFasterFreedomShow]

Absolutely 💯

[@insightpropertyhub1911]

Hey Sam, the issue I’m having is the seasoning period. We are doing a quick in and out deal and want to refi ASAP so we don’t have to pay unnecessary interest. Is there any lenders you recommend?

[@TheFasterFreedomShow]

We recommend small local banks and credit unions..Once a relationship is built you will start to see the flexibility 👍

[@chloeparisi1083]

DSCR loan

[@pickettproductions2226]

Explains the concept but not how to do it with a mortgage not hard money lender?

[@TheFasterFreedomShow]

I don't know if I fully understand the question..But the HML is for the intialy purchase and rehab..the bank will be giving you the mortgage on the back end for up to 80% ARV📈

[@vonnnner]

Highest LTV on a 4plex (at least in CA) is only up to 75%. Also be aware of conforming & non-conforming limits.

[@TheFasterFreedomShow]

Thanks for watching!

[@KingmannoTech]

Quick question Sam. Do you have to have an account with the small local bank? for them to do a Cash out Refi for you.

[@hxncho_in_a_ss3807]

No you don’t

[@KingmannoTech]

@@hxncho_in_a_ss3807 Thanks man

[@Jollofpappi]

So I could basically refinance my rehabbed home by providing the bank with Airbnb monthly income instead of a 12 month rental lease income?

[@TheFasterFreedomShow]

AirBNB income is harder to borrow against if its still a SFH. It's mostly in the local comps unless your in multifamily. Then it heavier on the income produced and less about the local comps.

[@Jollofpappi]

@@TheFasterFreedomShow copy that!

[@calebstearns250]

Does refinancing make your bill higher every month? And does it hurt your credit score to refinance?

[@TheFasterFreedomShow]

Because the value of the property has increased, my payments do too. BUT that's okay because I know that before I buy the property and can account for the extra cost. My business is taking out the loan so it doesn't interfere with my credit score at all.

[@meccawebb9050]

What about navy federal?

[@TheFasterFreedomShow]

Probably too big. If they're running commercials, they're probably not a small bank.

[@danielzamudio7813]

So let’s say my house apprises for 300k. When I refund a bank would give me 80% so 240k . So hypothetically I’m good as long as I spend less than 240 for the property and the rehab? Anyone here in az?

[@RoyallKing629]

So let’s say I get a distressed property and rehab it all in for 80-90k it’s now valued around 120. If I get 70-80% back on a cash out refinance I’m going to get a mortgage for the home at 120k but the money that I receive, the 70-80% from the refinance is that mines clean or clear or am I making payments on that money and have to pay it back?

[@TheFasterFreedomShow]

you go get a refi check and pay back the original lender. now you just have a loan with the bank in the form of a mortgage..but that mortgage is getting paid back with thte rent you charge on the house..

[@ckkendrick7861]

@@TheFasterFreedomShow so how do you buy the next house

[@TheFasterFreedomShow]

@@ckkendrick7861 Tonight I'm hosting a Live FREE Training @7PM (CST) 👉 go.freeopmwebinar.com 👈 Hope to see you there!!

[@ckkendrick7861]

@@TheFasterFreedomShow will this seminar be recorded to play later

[@TheFasterFreedomShow]

@@ckkendrick7861 LIVE👍

[@tangvu398]

How does seasoning come into play?

[@TheFasterFreedomShow]

up to the bank!👍 Have that convo before you lock anything up on contract

[@black_shadow3299]

But once you refi won’t you you be under water ? Does this only work if you take the 80% and throw it on another property ?

[@TheFasterFreedomShow]

you build the equity into the house. So when you take 80% of the current value your really just liquidating the money you put into the deal.. to then pay back original lenders and continue your business with the bank and your new mortgage👇 GOOD QUESTION! I hope this helps.. bit.ly/3LqBF4l

[@TheBRRRAgent]

Great video and Now AI is going to help you become even more efficient

[@TheFasterFreedomShow]

Samchat.io Check it out😉

[@luckylegrande5798]

Should someone dealing with real estate have an LLC or be doing this all in their name?

[@TheFasterFreedomShow]

You can start in your personal name, but it is much better to do it in an LLC.

[@TDS170]

How do you do this with an on market mls house

[@TracMan]

When you Refi and pull the money out, You're still on the hook for that loan correct? Who's gonna pay that?🤔

[@TheFasterFreedomShow]

Yes I owe the banks money. The rent from the property pays the mortgage.

[@markbeal5834]

Dude can I somehow chat with you? I have questions and I will need to do this soon and I've never done this before!

[@TheFasterFreedomShow]

HMU on IG @SamFasterFreedom 💯

[@markbeal5834]

@@TheFasterFreedomShow I don't have IG. Any other platform to connect?

[@solarsolicitor9618]

🔥

[@DavidMillo]

I’m so confused

[@303_t6]

Lol golf claps

[@ldelacruz22]

I tried to refinance my property and is been a shit show honestly

[@jonnyroses2312]

Could you explain do you think you did something wrong

[@andrewm6829]

Can you do a cash out refinance if the original loan is a traditional 30 year fixed? I’m looking to purchase a property that I have enough money for a 20% down payment, but do not want to incur the high interest rates while I’m rehabbing it using a hard money lender

[@TheFasterFreedomShow]

I personally think that you should leave your rates alone on the original house and just worry about the new house as-is (maybe access a heloc on the original house) I bought all my houses without using ANY of my own money. You can do this with HML and PL. I know that the idea of paying interest sounds like a crappy deal.. but just think of it as a cost of doing business and make the deal work with those numbers in mind. once you refi you will get all that money right back out of the deal👍

[@Chopping-it-up]

There is no way to buy a house without money. Even with investors that fund your project you always need some kind of down payment money.

[@TheFasterFreedomShow]

Yes, but it's not my money. I own the asset and I didn't use any of my own money.

[@Chopping-it-up]

@@TheFasterFreedomShow you can't get a loan for down payment money for an investment property. If you have a way of doing so please share it. That would be the only way to do it with no money out of pocket.

[@davidadamson3664]

I'm old and that was an old joke when I was a kid.

[@kylemckiernan1445]

PSA: Multi-family homes can only cash out refinance at 70%

[@DspeedTV]

So you get a refinance and you now have debt.. how much are we to rent to someone, and when we repeat do we pay the other mortgages off?

[@DONGRINTER]

Mayflowers don’t just bring pilgrims. Don’t be naive

[@EliteQuarTips]

Lol you’re not graham stephen in the thumbnail be yourself

[@TheFasterFreedomShow]

GS thumbnails are him stressed, worried, mouth open with a "oh crap" face. flames everywhere with red arrows going down. (fear tactics)

[@ckkendrick7861]

When you say private lenders you mean the banks To give you the money and do you mean paying the whole house from the lender, and please dont say private lenders as in you family and friends or rich uncle, cause how many people know someone who can loan someone 200k in cash

[@rushmoresociety2577]

Private money = money from family and friends. Hard money = money for investors. Or, maybe even a combination of the two.

[@caffina5882]

25 million in debt????

[@nathaneulslavens4182]

But ALOT of equity.

[@gianthills]

I don't like brrrr. This idea of not using your own money is BS. Makes more sense to do seller financing. NO BANKS!

[@benjaminbilic7611]

Another scammer

[@ronaldwilliams4053]

I’m 2 minutes in and I love the way u explain this 🫡