BRRRR Method: Cash Out Refinance to Make Money TAX FREE Investing in Real Estate
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- Опубліковано 1 жов 2024
- The fastest way to make money TAX FREE in real estate is the "BRRRR" method of real estate investing (which stands for "Buy-Rehab-Rent-Refinance-Repeat"). It is also known as the cash out refinance method. It's low risk, cash flow focused income property approach generates more money, even faster than flipping (without the tax drag of capital gains).
The BRRRR strategy is so effective because it allows you to deploy your money and get it right back (refinance), allowing you to recycle that capital into another deal (and repeat it again).
With the BRRRR strategy you build wealth so quickly because it allows you to control a real estate asset with little to no money of your own in the deal (after the refinance). This allows you to, essentially, have an infinite return on investment (ROI) on every deal. The infinite return comes from not having any money into the deal, and possibly even making some money at the end of the deal (cash in your pocket), plus passive cash flow each and every month thereafter. I've used this strategy over 50 times now in Canada, but it can be done anywhere in the world where you can buy a property and add value through renovation or rent increases (so basically anywhere).
Instagram: @mikerosehart for daily content & stories!
#brrrr #cashout #refinance #tax-free
#investing #incomeproperty #money
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awesome vid man very simple to understand cool bro
Razor Morris thanks 🙏
Trading as a beginner was very difficult due to lack on trading experience, this resulted in losing my funds though I've been able to recover all that I lost, all thanks to Mr Charles_forex09 on Instagram , i never knew good trader still existed till I come in touch with him_
@@MikeRosehart hi l have qst is when refenince does the bank want the money back when You refinance
@@MikeRosehart how do you find properties less than market value to get started?
Most of this makes sense except being able to do it with 3 more houses instantly. No one is going to loan you that unless you can prove you have massive income streams.
true, how are banks lending you multiple mortgages/ refinances? really confused here
I think you can bring them a portfolio but you would have to do it once already so you would need some source of income the first time
Hard money lenders don't care about income
IRS=Infinite return strategy lol
Ain't that right lol
You sir....have gained a subscriber. I'm a realtor here and my husband is an investor and I'm working harder this yr to educate myself more on this subject. We have 4 rentals and you broke this down soooo plain and simple. Thanks!
How many now?
I like this video... the only one that really explained things completely. BUT some of the filler clips were NOT need.. it was very distracting .
great explanation but I assume you need the 200-250k to invest on hand right?
More is better, but less is possible. Depending on prices in your area.
This strategy works in recessions or bull markets. In recessions deals can be negotiated and cashflow is great due to flat rents, in bull markets you have to work hard to find deals but you get appreciation on your deal & it’s easy to refi for high. I actually prefer BRRRRing in recessions.
I’m excited to do a video on each stage of the BRRRR in the next 6 weeks. How to buy a BRRRR (negotiate etc), how to renovate & rehab on a budget to add maximum value, how to get maximum rents, how to refinance 80% loan to value, and pull all your money out while still getting 500-1000/month positive cashflow. If worst case you fail first time around on the refinance, you should still have cashflow and can always refinance again :)
#pulloutmethod #cashpullout
Who can tell me at what time in the video I drop the pullout method joke?
2:24 lol
02:24
Jacob L lol
Go T.o you’re watching ;)
I love the pull out method ;) haha
The pull out method 😅🤣😂🤣😅 that's a good one!
why did nobody point out that 2k +22k = 24k 😶
Is this how the BRRRR method works ? I am a newbie so can someone help?
Amount you buy it for is $100,000
ARV is $180,000
Closing Cost and Rehab is 30,000
Appraisal $135,00
Now you rent the property ( I don’t know after how long do we refinance ) and then you refinance it and get $135,000 ( going to the bank and the appraisal thing ). Now the $135,000 covers the amount you bought the property for, Closing Cost and Rehab and then you will have $5000 left. Is that how you use the BRRRR method? If I am wrong can you explain it in simple terms to me?
Discovered the BRRR through Bigger Pocket. Thank you for sharing your analogy on this strategy.
I don't know how it will work in Quebec because the buying market is pretty high.
I just bought a house last year for $295,000 and I just did a appraisal and now it appraisal for $395,000 If I refinance can I keep money for my self ? Thanks for info🙏
From what I understand BRRRR is really limited if you’re not incorporated. If you work full time and earn let’s say 70k and have 5 more properties with a potential rental revenu of another 70k you’ll be at 140k and at very high tax bracket. Cashflow is not enough to cover the 40% income tax. How do you handle that, incorporation?
Curious, I’m in the middle of 6 BRRRs, I’ve flipped 4 this year and trying to go long term. But lenders I talk to won’t refi for 6-12 months. Any tips for finding a lender to do it in your 60-120 days?
Very detailed video with an easy understanding of the BRRRR Mike! Great video as always!
Thanks Tommy!
When you take a home equity loan, this is not free money, this is money that you owe the bank and you have to pay monthly. If you use part of that money to pay the remaining balance of your original mortgage (in this case the $ 160 K), you still owe the total $260K to the bank and you will be paying for this with monthly home equity loan payments. Did I miss something?
Exactly. You have 0 of your money on the property. It’s all back in your account.
The properties cashflow and more than service the debt payments so it’s as if they don’t even exist. Properties I buy cashflow $1000/month after mortgage, and all expenses. So even with vacancies I don’t worry about the debt payments.
The idea is you borrow that money out of the property equity at 2-3.5%, and invest it in more property down payments where it can grow at 10, 20, even 100% ROI, and you make the difference.
math doesnt add up to me
derek carlton pretty simple math really. 200k house. He put 40k for a down payment and financed 160k with 23k for repairs. So total out of pocket is 63k(minus closing costs) with a 160k mortgage. New appraisal is 325k after repairs are made and property is cash flowing consistently. He refinanced with the bank(80% of appraised value is typical) which gives you 260k. 260k(new mortgage) pays off 160k(old mortgage)= 100k. 100k-63k(original money out of pocket)=37k left over to pay yourself and/or put into a new home. Now I’m assuming these numbers that he used are made up. Because one thing I don’t agree with is the amount of cash flow he expects to be receiving each month. At least net cash flow. There was an 1,100/ month spread after debt service, but before vacancy, repairs, taxes, insurance, Cap. Ex., or property management were taken into consideration. Not that it would necessarily be a bad deal after all accounted for, but it definitely wouldn’t be $1,000/month in your pocket.
@@Its_andrewdude I agree.
PULL OUT METHOD
For the 260k loan, where is DP factor in your equation? You’re missing closing cost in your numbers as well
So you would get your money back but wouldn't you be paying a bigger monthly mortgage payment property? I'm lost I'm going to watch again
Patrice R. Yes, so instead of cashflow of say 1200 you’d have 800 in cashflow but all your money back. So 0 money in the deal. Return on invested capital is much better.
@@MikeRosehart ok I thought so. I understand thank you for the reply. I just bought my 4 family but a yr ago. In going to try basically the same concept in curious on how this will work out for me
How about all the costs of refinancing? Probably take another 8-10 off of your 37k.. or did I miss it?
There are easier ways to make $37,000 over 5 months and now that you increased the debt on the property, the monthly cashflow is much less than before. You could save up your monthly cash flow from the original deal for several months and you would have $37,000 without any additional debt. Then repeat. After you have 5 or more of these deals, your monthly cashflow will be significant enough to buy more homes over shorter periods of time.
Was about to BRRR it then Covid, said no RRR... lol. Getting rejected for Refi on inv prop. Share a bank that is doing them during covid? Thanks.
Wow this actually made so much sense I love it
Thanks! It’s my favourite method. It’s actually indexing now too after I took it down and reuploaded
Should look into BiggerPockets too if you want to know more about the strategy
Very interesting video. Not fully sure I understand how you're able to take money out "tax free" after you refi.. Yes, you pay back your initial loan and have some extra left over, but you'll still have to make payments, so it's not like you can go on a spending spree.. I'm confused there..
Mike, love the videos. Appreciate you putting yourself out there. You are about the only good thing that has come from reluctantly listening to the CBC on my commute. I figured if they were taking a dim view on you that you must be doing something right. And I was right. Question for you. How do you manage to get bank financing on your 2nd, 3rd, 4th property? Especially after you quit your day job. Making 90k, bank seems to only want to give me 300-400k and wont count the rental income as part of my income.
Great video man. Would you also consider the money paid back I into the mortgage as profit in a sense? At the end of the this you are receiving $2500 a month in rent and paying 1400 to the mortgage and maybe keeping around $1000 after property tax BUT that $1400 going to the mortgage is essentially going to the equity of the home that you own. So aren’t you also increasing your net worth by about 17k a year in addition to everything else? Minus the interest of course.
15 * 17000 = 255000 , about 40% should be paid in taxes, cashflow will not cover this expense. It is not sustainable. Please someone explain how are you handling that, or all this is just theory?
so your refinance is like your new mortgage and you use the equity from that to pay new downpayment but you'll have to qualify again for a new mortgage? so basically you have two loans - the refinance and mortgage? and bank allows multiple refinance/ mortgages? or you have to sell one? what if you want to hold for rental income, is this strategy still viable?
Can the BRRRR works on a pre-selling condominium unit?
Only if you get lucky with appreciation, which isn’t really a Brrrr, but I guess it’s totally possible in a hot market. Or maybe if you had an inside track to buy a prebuilt condo for below market value
Got it. Thanks bro u da man!
hi, just want to check one thing. Once we refinance and payout our previous loan & do the self - pay it is great that we paid the loans and pulled out all our money back, but still we have the refinance money to pay back to the bank and with interest right? How do you manage that?
Can you make a video about how to go about finding the right property in the right area please? Everyone says money is made when you BUY, meaning you have to buy low. But where do we find distressed fixer upper properties that aren't too damaged and will cost too much to rehab?
How would we know this? Hire a contractor?
That's the stage I'm at I think.
I have the funds for a down payment, or several depending on the price. I have excellent credit, so I should get the best rates. I own a primary residence.
I think I need to get a rental in order to increase cash flow to get more rental properties.
My pull out game is strong. (BRRRR)
😆
#pulloutmethod #cashpullout
Who can tell me at what time in the video I drop the pullout method joke?
2:23 - 2:26 minute
I wouldn’t recommend that method lol 😂
No one has ever explained this the way you did for me today. Thank you very much for taking the time to do this
Thanks for the video. I have to admit your two jokes were funny!
haha - thanks!!
What if I have a property that i paid cash for and renovated it and rented it... what is the best option for me? Just do a traditional mortgage to get my money out?
What about your new mortgage. Wouldn't you owe money on your new mortgage. I understand that you paid off the first one. But what about the second mortgage you took out .
Mike do you have a budget for buying your properties or just follow the 1% rule?
This week at work I explained BRRRR to a co-worker and when I said "re finance" he immediately reacted and I didn't really need to explain the math as he was already doing the calculations in his head.
Haha -I buy anything that cash-flows or is undervalued. sounds like a smart guy :) Full Cash-Out Refinance is basically a BRRRR
Mike, I love this strategy, thanks for re explaining it to us in a way that anyone can understand.
I invest in student rentals and would like to know if this brrrr method would work.
I figured, the only way you can do this is if you buy cheap enough.
If you know ways of improving value of a property with student rentals (bedroom additions) in mind, I would love for you to share! Thank you sir.
don trinh the strategies definitely work on student rentals. I’ve brrrr’d lots of them
How do I get an ARV and question number 2 do I get taxes for rental income ?
Great way to break it down your videos are so helpful I want to try this I just got my fixer upper
1% back each month just from the rent? IMPOSSIBLE where I live. Usual senario here (Norway) is a 500 000 dollar house with 2 units rents for 2500/month. I found a property for 530 000 that rents for 3600/month, which is pretty good. Including value increase of an average of 4-5% though... then the numbers are completely different.
What about in commercial real estate? I hear lots of big guys refinance large commercial properties
Perhaps, your speed of acquisitions is the result of a few extraordinary factors? E.g., [1] living in a fast-growing property-market. [2] Living in an advanced country with a prosperous and growing economy. [3] Having professionals (e.g., bankers, financiers, lawyers, etc.) that work quickly to close transactions in days or weeks versus months or years as in other parts of the country/world.
I’ve been doing it in years where appreciation was 1%. It actually works better in a recession. It’s harder to do during a booming market because you can’t find or negotiate the deals. Trades are harder to find/get.
Where’d you get $160k in mortgage?
Thank you for your example of the BRRRR strategy. Btw you’re good looking too. 😉
You are a good man.👍great videos
🙏
Great video Mike! Love the new whiteboard. Looking forward to doing some other BRRRR's in the near future!
Sounds good! Me too! THanks!!
Hello
Did the bank ask you for collateral asset like bank savings or others ?
Okay... so now you’d owe the bank $260k instead of owing them $160k before outright ownership? I always get caught up on the refi step.
You didn’t miss anything. This is highly risky but highly profitable. If you mess up in some way (I.e. at fault legal from a tenant) your entire business crumbles. If one keeps rolling it into another the risk grows and so does the profit, there becomes a point where one has to sit back and start repaying the debt quickly to prepare for the market correction (there always is one). There is nothing new about this and it has resulted in countless people declaring bankruptcy as they don’t stop the cycle in time for a market down turn.
Whats up with the creepy poverty footage????
Not sure if I missed but there were a lot of cost missed like Closing cost of buying any property like land transfer tax lawyers etc reason they all take a cut out of your net equity even for refi purposes plus 1% rental of the property purchase Price is completely unrealistic.. may be you can enlighten me more on that.
pawandeep jaggi they’ve been addressed. The closing costs are typically 1% of the closing costs. Does it change the BRRRR at all? I’d still have all of my money out and then some.
Thanks Pawandeep for asking about the cost of a refinance. I was scrolling through the questions to see if it was explained and how that impacts the bottom line.
Is it the same thing if I calculate the new value of the house minus what I owe for the old mortgage. the amount i can cash out is 80% of that?
Do i have to put a down payment for the new loan of 325,000? what about the fee's for refinancing? would that eat up some of my profit?
Ndybrrs no, you pull your money out. If you follow the example, all that happens on refinance is the old debt is paid out and the difference is sent to you in cash that’s yours.
The fees are mitigated if you do an open mortgage or heloc or private financing and then go to A lender, or just do a 1 year term then refinance. A Longer BRRRR but one with no fees is do-able. Otherwise factor in the $2000ish breakout fee into your profit margin and decide if it makes sense.
@@MikeRosehart thanks for the reply and clearing up a few things for me. I'm trying to invest in property but too afraid to spend all the hard earn money I have saved up.
I can not get 1% rule here in belgium because rents are wayyy to low. I would make 800/month for a 200k property and a loan of 750/month. How would this be possible
Cryptonian Airbnb? Often double market rent at least.
Multi family rentals like duplex or triplex or make more micro-units?
Look for houses or apartments that have 3-4 rooms plus big common area so you rent to 3-4 people for 500€ per person and get much more cash flow. Good luck!
Is it possible for a seller to allow the buyer to refinance their property for closing costs?
Thanks for explaining this!
When you refi and buy another house which one do you consider your house and which one your secondary loan
Sounds good I still flip the property and do it again and again
Hi what markets you working in canada?
If I own my own home with about 80k in equity but don't have a lot of cash upfront to start this process, would it be wise for me to refi and use that money to start this process or would that be risky since I wouldn't have renters that pay the mortgage? My day job isn't going anywhere so it seems like I could potentially start this way but not sure what the risks would be or if there are other options. Love the video though and I subbed!
You could always get a HELOC then you can use that money when you want and it costs you zero interest until you do use it and your mortgage stays the same.
This video was very good man , I just bought my first rental property. Now this video just pushed me forward 🙏🏾✌🏾
Let’s go wooo.
Don't you have to pay on the mortgage monthly once you refinance it?
In the US you have to wait 6 months fos a cashout rifinance 😞
Lol they way he say “tonnnn of money” 🤣
22+2=23?
Winston Rajendram M.D. gotta see if you’re watching 👌 - throw in the odd easy mistake to get comments but that doesn’t affect the message of the video 👍🏼
OH MY around the 10 minutes into the video where you say take out the money tax-free, just blew my mind, I heard of the brrrr method but the way you explained it, its way more advantageous then I imagined, mostly the tax free part, cause as you know, our tax rates are ridiculous, thank you so much and also where in Canada do you buy your properties?
I like Southwestern Ontario, mostly London
Glad to have blown your mind re tax free :)
That’s the best part. It’s basically a 1031 for Canada
@@MikeRosehart ya, everytime I hear about the 1031 exchange, Im sad that Canada does not have something like that, well I guess they do but it different XD
No the hard part. Finding the property.
This has to be the BEST example of the BRRRR!
How did you get you initial down payment?
The laws must be different in canada then.. or you must have had A LOT of cash to buy 50 properties in a year. i thought there was a 6 month seasoning period with most banks before refi and cashing out to move on to next property?
Optimiza Marketing Group one strategy is to buy with private mortgages and refi with an A lender or a different lender. If you use the same lender, yes there is a seasoning period.
I work with lots of investor partners and lots of lenders. We bought 12 properties in one week at one point. :)
@@MikeRosehart wait so there's no seasoning period if you use a different lender? so in my case im buying a property cash (using a heloc) then rehabbing it and refinancing with a mortgage
company, since the mortgage company would be different, there is no seasoning period? (in the U.S) =)
Great video and great jokes!! I need some help. I undersatnd the 20% down= $40,000 and the 80% loan=$160,000. Where I'm lost at is the RENO cost. Is that coming from my money/capital or does the RENO cost come from the $160,000 loan from the 80% of the house. Basically to make it more simple in case my question is a little confusing. Is the Reno cost coming out of my pocket/side or from the 80% loan.
Thank you, in advance.
Fabian Martinez yes it (the reno) comes out of your pocket but you get the money back (reno and downpayment) on the refinance.
Thank you for a fast reply, liked and subscribed, have a good day!!
How do you find those buys? Strategies to find a Brrrable property? Thanks so much.
All sources on market and off
@@MikeRosehart Merci!
30 seconds in and a laugh track, cmon man
I’m slightly confused. Aren’t you still taking out a bigger loan worth 260k? so won’t you still have to pay that off? Can a kind soul take the time to explain this to me please!
Somebody - yes, you’re essentially borrowing back out your downpayment at like 3% interest baked into your mortgage. That means you get the money out of the deal though, so it’s a 0% down deal and Return on invested capital is very high.
Refinancing in an LLC or in your name than put it in an LLC?
What happens when the market tanks, and the property value drops to its original level and you’ve refinanced up to the higher price?
Dunnagan Motta you have $1000/month cash flow positive still...
You wait for the property to recover. 10 years from now I guarantee the real estate prices are higher than they are now. 2 years from now they could be down, but we don’t play for appreciation - I play for cash flow from rental income. Rents remain stable, even in recessions
Mike Rosehart unless rents don’t remain stable with high unemployment 😐
is there a seasoning period for when you can refi?
Thank you for a detailed description in something that I was curious about. Subscribed.
👌
Good explanation. What about cash flow? I'm guessing it goes down substantially since now you went from a mortgage of 160k to 260k, correct?
Danny Alvarez yes cashflow is reduced, but still positive cashflow and now you can pull out 100,000 to buy 2 more properties - so the Net cashflow is overall higher.
so in order for this to work you need renters for the properties correct?
I always hear that you are allowed to only pay a lump sum payment of 10% to your mortgage per year. How would I be able to pay the initial mortgage amount of $160k?
Thank you for the video! I'm a young civil/structural engineer and looking to use my savings somewhere, thanks for this!
Did this ever get clarified for you?
Mike, should I stick to buying duplex homes instead on single family homes? For higher cashflow?
PiqueGustavo1986 it depends. That’s definitely one approach. More cashflow can be preferred, but more headaches come with the cashflow.
I've watched a ton of videos on this. you made it real simple to understand thanks!
SuperBlakk Truth aw thanks 😊
You just borrowing from your self you didn’t make that refi money
Kha nguyen I think you’re confused - the bank writes you a cheque for the difference - you have that cash in your hands. All your money you put in, including downpayment is in your hands - tax free. And you still have remaining equity in the property...
Hi can u explain again your 1% rule please
Where are you from in Canada because in Ontario the average house price is 500000
At the time I wrote this video, London East had properties this cheap.
Now you can still find fixer uppers for 300k in London. 150-200k in Sarnia area.
missing a lot of numbers here (property taxes, closing cost, refinance costs...etc)... but good video!!
Emmanuel LE BON accounted for in the reno budget would be the carrying costs, and the principle is the same with or without major refi costs
Amazing! How would you keep getting approved for loans though?
Use o% business cards
So you did a morgage over a morgage. How the bank give you money? What you told the bank the money was for?
You answer the other question. But this is very important. Because I found strange a bank give money for a remorgage when you don't use that money to do any work in the property. Or you say to the bank that you are going to use the money on the property and on end you don't use it? If so, how come the bank take the same explanation when do over and over again?
This is so informative. I am a beginner and would love to hear the tips. Thanks for making this video!
Hi there, thanks for the video and your time. I’m from Canada, too. How do you refinance if the banks don’t do it according to the equity in the house but the person’s income?
Some banks will lend on net worth. Some credit union etc. If you really can’t find a good lended, find a B tier lender OR just sell :)
I fully enjoy your overall strategy, but I am curious what you would do if the lenders in your area/country required loan to market value of not more than 60% versus 80%? In my experience, once lenders realise that you are not a residential buyer, but a portfolio real-estate investor, corporate lending applies. Then, the rules and parameters are much more conservative (e.g., first-time home-buyers can qualify for up to 100% lending and be able to take up to $25,000 from a registered retirement-plan tax-free towards that first-time purchase) . . .
It definitely works anywhere. I used to have limiting beliefs around financing - then I realized I didn’t have the right mortgage brokers or financing people.
What market are you in?
I have 50 properties and I still borrow 75% LTV all day :) credit unions are great and small business loans 80% loan to value are great too for rental properties once you have 10-20+++ buildings.
@@MikeRosehart Most of that experience relates to the Caribbean since the mid-1980s, and Barbados in particular. It is one of the countries (others being Greece, Portugal, Italy, Spain, Iceland, Venezuela, and Ireland) that had a deep recession following what happened in the U.S.A. during years 2007 to 2009, and then stagnated/declined for the next ten years. There was some recovery during years 2015 to 2017 (though not enough to recover to pre-2008 levels) and then it went into economic recession again in year 2018 to present.
@@MikeRosehart In all previous generations, Barbados like other Caribbean countries had a long history of reliable appreciation of real assets, but the years post-2008 brought shocking crashes of up to 40% to 50% in home-valuations, i.e., depreciation, and we have witnessed an entire lost decade, with no clarity about how long it will take to recover just to where things were c. year 2007.
I have a couple of rental property now your video showed me a new strategy. Is it possible to set something up were can chat about my specific numbers?
Patrick Clopton I occasionally do paid coaching calls - like very occasionally - one per year? 😂
Another great video!! Thanks Mike!
I think this would be a good plug for one of your older videos on crunching numbers on a property - ua-cam.com/video/qlj91bbtC8E/v-deo.html
Thanks 🙏
I did a video also (in the description) on how to buy 10 properties in 3 years - whiteboard explanation.
Awesome job Mike. Keep up the great videos!
Steven Cacace thanks 🙏
how much money do you bring to the table to be able to do your first BRRRR with a hard money lender
Depends on a lot of factors. Could be as low as 0 if the hard lender is a relative or friend, but as much as 25-30% of purchase price if including renos and a stranger.
Can I do a cash out refinance 6 months after I renovate and rent my property? How long should I wait to do a cash out refinance? I plan to do the brrrr method with a million dollar rental property. I need to pay private lenders stat.
Goddess Zoei yes, the short answer is you could.
liked your video but numbers are a bit off. conventional loans for investment property on duplexes only goes up to 70% and highest is 75% LTV. unless you go DSCR non-qm. Also with lending you always have closing costs that was not accounted for. you also have holding costs of the private lending you had before you refinanced. time frame is fast as conventional and normal mortgages unlike hard money have seasoning requirements that you need to be on title for 6 months before you can cash out.
It’s pretty standard 80%. In Canada lenders pay your closing costs. You can definitely shop around to reduce costs & find tbe best mortgage products.
Some banks have seasoning requirements, some don’t. Sometimes refinancing can be built into the mortgage with a purchase plus improvements.
Happy to open your mind my friend.
I have a question Mike, I'm looking at a potential property that I'm considering on doing a BRRRR. Here are the numbers: ARV - $134,000, Purchase - $64,000, Rehab - $16,000, PML taking care of closing costs, rehab and interest at 13%. PML Loan Amount - $83,000. My question is the refinance part, let's say I have a small Credit Union here in Texas. And they appraise the home at $129,000 do I have to accept the whole amount that the appraiser is telling the lender? The reason why I ask I would much rather just take a lessor amount of $110,000 so my loan with the bank is smaller. Hopefully that makes sense?
Rickey Miller Jr I don’t see why you wouldn’t want more debt if the interest rate is below 4-5%.
Rickey Miller Jr and no you don’t have to accept anymore Debt than you’re comfortable with
Mike Rosehart that’s a good point. I was just thinking that it would make more sense to have a lower loan since the payment for the mortgage would be cheaper which would than result to more cash flow?