Investor · MO · Member since 2021 · 8 posts · 2 votes
Weird question, but lets say in a future BRRRR deal I have a PML fund the entirety of the acquisition + rehab. Now that the property is fixed up and appraised for a higher price, I go to a bank to pull my equity out of the deal and repay the PML + interest via a cash-out-refi.
Question: Would the bank allow my PML to co-sign on the refinance if I am using the money to repay them?
If you're wondering why I would try to do such an odd thing, I'm 20 and don't have a nearly attractive financial profile to banks by myself, so I am considering having my parents act as the PML in this situation.
Lets simplify this... Don't think of it as a "PML." Its your parents. Sure they can co-sign a loan. Just make sure that they have sufficient available credit servicability to cover another loan. Also, make sure they aren't planning on moving anytime soon.