How difficult is it to get approved for your first time? What paperwork is required to submit an application? How do your terms compare to others? Great video by the way. Love the example and use of the whiteboard.
Nice video but what market can I buy for those numbers and it’s only 50k that will have an Arv that high. I’m in Atlanta and those numbers aren’t happening.
07:00 Question: With the convention$217K, will I still need to put down payment for the conventional/residential loan? And will this be additional out of pocket?
What’s the monthly payment during the 6 month process of buying/rehab/refinancing? During this time, we’re hoping construction is on schedule with no tenant in place yet. Or would all we owe during that 6 month period is the initial costs you broke down upfront (1 pt, 8:25% rate , etc?)
Thanks for the video! When doing BRRR and using HML, would I be able to be funded even if the property is not in distressed? What if the property is pretty much rent-redi. I woild do small cosmetic change to be more modern such as paint and replace floors but that would be pretty much it. Once tenant is in there, then refinance out to like a dscr. But the question is, would a HML lend on this property with a fix/flip loan when the property is not so distressed?
My question is, what if you don't have the exact down payment, can I borrow from another hard money lender for the down payment and pay them back when i refinance?
Great video! However, I believe if you slowed your talking, and broke some of these components down in further depth this video would get a lot more exposure. Regardless, thank you and I look forward to more videos like this.
I'm fairly new and trying to learn hard money, so, my question..Hard money to buy and rehab. Once finished and have tenants, do a cash out refi to payback the hard money loan. Correct? And the refi would be a conventional loan? Curious how I would pay back the hard money loan if not selling for 5 years. TIA
It depends on why you don't get approved for a 30 year fixed loan. If it's because you have bad credit, then probably not. But if it's because of a DTI issue or if you already have 10+ loans but the deal is good then yes!
@@Thenatalyteran then yes, this loan type is perfect for people in your position because we care about the income that the property generates instead of your personal DTI ratio
As a general contractor I'm looking to purchase a three family home that needs some rehab and this deal has instant equity as well so can you help me bro?
Can you do the BRRRR in the Bay Area specially in Richmond, CA? As you knew, Richmond city is known to have high crimes but have migrated to cities like Pittsburge and Antioch.
Yes but it’s really tough. Finding deals in the area is incredibly hard. It’s super competitive and there are about Are a handful of people that are dominating the area with huge marketing budgets.
Yes, you should be able to BRRR in Richmond. It's all about buying at the right price so that your property can cashflow after refinancing the property
Why would you use hard money to scale with Brrrr to scale if you need to pay 50k on a 200k property when you can just get a conventional loan for 25% down and pay less in interest? I don’t understand
Great question! At some point, you won't be able to get a conventional loan. That's when you would use a loan like ours to continue scaling your rental portfolio.
@@seanlovesrealestate Gotcha, thanks! I just have been a bit confused by that because I hear of a lot of people starting with brrrr but didnt understand what the advantage was. That makes send though after your first ten.
Then you need to figure out a way to make more money first. You can try whole selling RE, working side jobs on the weekends, find a capital partner, etc.
Schedule a call with me to do the BRRRR strategy with hard money loans: calendly.com/seanpanrealty/call
I want to do this..can you show me
Best BRRRR Video I’ve seen thank you for the break down !
Thanks for watching!
Vid quality going up bro. Keep going! They're catching on.
Thanks Sean !!!!. Will be scheduling a call with you soon!
Such a great tutorial! Thanks
Glad it was helpful, Steven!
Why didn't you include costs to close for the second time ? Just curious ?
How difficult is it to get approved for your first time? What paperwork is required to submit an application? How do your terms compare to others? Great video by the way. Love the example and use of the whiteboard.
I'ma schedule a call and get the step by step. Vocabulary and anything else I need. Pho you talm bout.
YOUR THE BEST EXPLAINING EVERYTHING! THANKS FOR SHARING MEN YOU HAVE NO IDEA HOW MUCH YOU HELPS OTHERS WITH YOUT CONTENT!
Hi Roman, I love seeing comments like this. It keeps me motivated. Thank you so much! 🥹
Nice video but what market can I buy for those numbers and it’s only 50k that will have an Arv that high. I’m in Atlanta and those numbers aren’t happening.
07:00 Question: With the convention$217K, will I still need to put down payment for the conventional/residential loan? And will this be additional out of pocket?
Great content 👌
Thank you 🙌
What’s the monthly payment during the 6 month process of buying/rehab/refinancing? During this time, we’re hoping construction is on schedule with no tenant in place yet. Or would all we owe during that 6 month period is the initial costs you broke down upfront (1 pt, 8:25% rate , etc?)
You'll need to make the monthly interest payments for the loan. The upfront costs (processing fees/pts) will be paid when you close on the deal.
What if you don’t want to sell it. What if you want to keep it as ur primary residence ? Does refinancing still work. ?
This might be of help, Monica! ua-cam.com/video/2vvvwRPpzN8/v-deo.html
I understand everything except how you get the lower interest rate.
Can you also refinance with hard money loans if you have bad credit?
You need to have a good credit score to refinance.
I know it's a BRRRRRR video... but the ice cream truck subliminal sound in background drove me crazy! Eating ice cream rn! Great video, again! 👏💪🏼💯
haha, we'll change the music lol
Can you tell Seller you will buy with cash when you pre-approved for a hard money loan? To get a bargaining price with the seller.
Yup, but in the contract, you can also write that you have the option to use hard money in the notes
Why are we paying for interest upfront?
where did the rent rate come from?
You can do rental comps through Zillow or rentometer to see what an average rental will get in your target market.
It’s hard to refi out
Thanks for the video! When doing BRRR and using HML, would I be able to be funded even if the property is not in distressed? What if the property is pretty much rent-redi. I woild do small cosmetic change to be more modern such as paint and replace floors but that would be pretty much it. Once tenant is in there, then refinance out to like a dscr. But the question is, would a HML lend on this property with a fix/flip loan when the property is not so distressed?
if it's not in distressed condition when you buy then your ARV likely won't be high enough to get your money back when you refinance
How do you get a loan from the bank to cash out refinance when you already own the property by using a hard money loan?
The refinance will take over the hard money loan.
why only 70% ltv refinance? would there be other fees included in the refinance closing cost etc?
My question is, what if you don't have the exact down payment, can I borrow from another hard money lender for the down payment and pay them back when i refinance?
HI Sean! How I can get a preaproval letter from you..? I`m here in the bay area.
Awesome! Feel free to schedule a call with me here www.calendly.com/seanpanrealty/call
Hey, what money is used to pay the hard money lender off, the cash out refinance doesn’t cover 160k to pay off the lender
I'm going to be hitting my second year as a 1099 what would be the step for some one like me to get into investing in real estate as 1099.
If you're trying to get a conventional loan, get in touch with a lender and have a conversation about your situation
How can call you Mr. Pan? I am from philippines
Great video! However, I believe if you slowed your talking, and broke some of these components down in further depth this video would get a lot more exposure. Regardless, thank you and I look forward to more videos like this.
Thanks! I try my best lol. Alternatively, you can reduce the speed to .75x. ☺️
@@seanlovesrealestate haha got me there! Good one lol
I'm fairly new and trying to learn hard money, so, my question..Hard money to buy and rehab. Once finished and have tenants, do a cash out refi to payback the hard money loan. Correct? And the refi would be a conventional loan? Curious how I would pay back the hard money loan if not selling for 5 years. TIA
That's correct, you can refinance the property after rehabbing it to get out of the high interest hard money loan!
@@seanlovesrealestate How do you get a loan from the bank to cash out refinance when you already own the property by using a hard money loan?
How do you cover your monthly payment from the hard money lender before the refinance; does it come out of pocket?
Yes only interest tho
Do if I can’t get approved for a conventional loan for 30 years a hard money lender might be able to lend me for the 30 years ?
It depends on why you don't get approved for a 30 year fixed loan. If it's because you have bad credit, then probably not. But if it's because of a DTI issue or if you already have 10+ loans but the deal is good then yes!
@@seanlovesrealestate if I have good credit but I just don’t have a regular job with a W2
@@Thenatalyteran then yes, this loan type is perfect for people in your position because we care about the income that the property generates instead of your personal DTI ratio
As a general contractor I'm looking to purchase a three family home that needs some rehab and this deal has instant equity as well so can you help me bro?
You can schedule a call with me here: calendly.com/seanpanrealty/call
How did you get 6800 in interest?
Hey Frances, the loan amount is $160,000. At 8.5% and 6 months, that equals $6800!
Can you do the BRRRR in the Bay Area specially in Richmond, CA? As you knew, Richmond city is known to have high crimes but have migrated to cities like Pittsburge and Antioch.
Yes but it’s really tough. Finding deals in the area is incredibly hard. It’s super competitive and there are about Are a handful of people that are dominating the area with huge marketing budgets.
Yes, you should be able to BRRR in Richmond. It's all about buying at the right price so that your property can cashflow after refinancing the property
How common is it for a new investor to get approval from a hard money lender? Is based on the investors record or how strong the asset is?
New investors get approved all the time. The rates are usually a bit higher and your leverage is usually capped to 80% LTV
@@seanlovesrealestate thats good to know! okay, and youre talking about refinance portion correct? when its time to pull your money back out?
@@OpenMicAwareness I was talking about the hard money loans
@@seanlovesrealestate I figured… just wanted to clarify!
Thanks for the insight Sean!
Why would you use hard money to scale with Brrrr to scale if you need to pay 50k on a 200k property when you can just get a conventional loan for 25% down and pay less in interest? I don’t understand
Great question! At some point, you won't be able to get a conventional loan. That's when you would use a loan like ours to continue scaling your rental portfolio.
@@seanlovesrealestate Gotcha, thanks! I just have been a bit confused by that because I hear of a lot of people starting with brrrr but didnt understand what the advantage was. That makes send though after your first ten.
So you need 10k to start
What if I don't have 40k just sitting around 😢
Then you need to figure out a way to make more money first. You can try whole selling RE, working side jobs on the weekends, find a capital partner, etc.
Hi . I'm buying some properties in London. Can I have a little of your time please. Paid of course.
Obviously, you know your stuff but it was too fast. You rushed it.
Watch it again. And again. And again. 😂