Looking to be Extra creative

[Michael L.]

If I purchase a deal with owner financing an then do a refi to acquire the financing to rehab the property, other than closing fees + loan fees, what other costs would be associated with the refi? Thanks BP Fam!

[Michael L.]

Quote from @Alex Garcia:

@Michael L. What I meant is that it could be more convenient for you to do the rehab while the property is being financed owner finance and the do the refi after the rehab is complete, that way you could do a cash-out refinance and get some of that money back.

Of course the challenge of doing this is to get the money to do the rehab, for that an option could be do use hard money or do a Joint Venture with someone willing to invest the capital for the rehab and get paid back after the cash out refinance.

Of course the numbers would need to square up to make sure the cash out refi gives you enough cash to pay back the HM lender your partner.

Just an idea that crossed my mind while reading about the situation, you'd have to run the numbers to see if it makes sense for your particular situation.

@Alex Garcia, gotcha my man👍🏻. Since this is my first rehab I'd prefer to not use private money, hince the extra creative part. I hear you with the jv idea, I kick that around a little bit. My biggest goals are obtaining the experience while building a foundation of my own to present to the different types of resources that would like to see a background before providing their services. Everything has a solution, it's about finding it and getting to it.