BRRRR, refinancing hard money to portfolio bank

[Pete Storseth]

Hello BP

I'm planning my first deal based on the BRRRR strategy and I'm stuck. The refinance is key to get cash out in order to repay lenders and be able to repeat.

My question is, when you refinance aren't there a number of obstacles?

1. You have to qualify for the conventional loan to refinance into it.

2. Using local banks that keep loans in house, aka portfolios, still require 80%LTV which means you need to raise the value significantly in order to cash out refi.

3. Its confusing to research, because many investors are refinancing into "portfolio loans " that include multiple properties instead of just one refinanced property at a portfolio lender.

4. Doesn't this put too many properties on your credit to eventually lead to maxing out what banks will do for you? Forcing you to stay with hard money or private money?