Using refinancing techniques to pay for properties - The whole st
I've heard a lot of investors ay that they haven't had to use their own money to pay for their investments because they refinance their properties instead.
I generally get what their saying, but I don't necessarily see how you could endlessly do this. it is my understanding that when you do a cash-out refinancing on your property you receive the amount of money of what your home is worth in the form of a loan. I understand RE investors usually do this after renovating their properties because it increases the amount of money they receive from the refinance. I understand they use the money from the new loan to pay off their old one as well. But after that I kind of get lost. So I have some questions.
If you can provide insight to ANY OF THESE QUESTIONS I WOULD GREATLY APPRECIATE IT.
(P.S. Sorry my caps button got stuck)
#1 Do you use the money left over after paying off the loan for a down payment on another property, and if so what about holding costs, and the cost of renovations where does the money come from?
#2. Does this only work with buy and hold properties (BRRRR's) or can you use it with buy and sell, and if so how?
#3. When you refinance don't you only get 75% of what the your home is worth, or some other amount set by the bank?
#4. What fi you get denied for a refinance?
#5. How does refinancing affect your credit?
#6 Do you have to use the same bank you bought the house from to refinance?
#7. if you paid cash for the property can you still refinance?
#8. How many times can you refinance a single property?