BRRRR Investing - Transferring of Lien

Real Estate Agent · Milwaukee · Member since 2019 · 33 posts · 14 votes

Hey Everyone,

I'm really close on my first BRRRR property and very excited! I have one question for everyone as it was brought up to me today.

I am going to borrow 190k for the deal using private money.

I found a bank that will let me refinance after 6 months.

1. How does the transfer of the lien work?

2. Is the private money lender lending the money directly to me or do they get a lien on the property?

3. After the 6 months, does the bank pay the private money lender directly first and get hold of the lien?

Thanks guys!!!

Drew

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Kathie Riedel
Investor · Hot Springs Village, AR · Member since 2018 · 112 posts · 56 votes
6y
Suggest doing both the purchase and the refinance through a title company. The title company will record the documents showing the first title transfer and record the lien. On refinancing a title company will handle the same documents and procedure with the new lender for the second transfer.
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