Private Money Lender Question

[Anthony Bain-alves]

Hello BP community, I am very new to the world of real estate (and I mean VERY new) Like a lot of others I’m not super rich so I don’t have a lot of money to just throw at properties. There is one thig that has been on my mind since I started learning about real estate, as far as private money lenders go, what is usually the relationship between the lender and the buyer? More specifically, what is the process at which you pay back the lender? Does it come out of the cash flow every month? Is it expected in full payment at a specific time? Obviously I would like to be able to work with private lenders because it seems like one of the more accessible options for me, but I’m just confused as to how these lenders get their money back from the buyer. Any information or advice on this would be greatly appreciated and I apologize if this is a stupid question I just don’t want to jump into sometjing without knowing how exactly it works. Thanks guys! Hope to hear from a lot of you as I’m sure everybody has different advice to bring to the table. :)

[Kariann Bowles]

Great question, I have been wondering the same thing. After you refinance the property and pay back the private lender how do you buy the next property, borrow again from a different lender? What if your initial private lender is family? I also apologize if this is a dumb question, I’m trying to learn how this BRRR method works with financing each property. Thanks!