BRRRR refinance question

[Brock Norton]

So I get the process of BRRRR. My question is in the actual refinance portion. When you refinance a home at 70%-ish LTV of ARV after repairs/updates and its rented does the lender just give you cash in the form of a check or direct deposit into your account that you then are responsible to use to pay off your hard money lender, private lender, or to just get your own cash back? And then you are just then paying a traditional mortgage from there on out, right?

From what I gather there are some who do give you cash (check/direct deposit).  Some will pay off your private or hard money lender directly.  Some require seasoning and others don't.  Some you can do a delayed finance exception and others not.  

Any insight on this portion would be appreciated!

[Andrew Postell]

@Sean Graham thanks for the questions and post here. You have it correct. I feel that the "create the LLC" strategy is better and worth the extra steps because you can receive more money AND the rate is lower. So if you did a "delayed financing" transaction and the "Create the LLC" transaction and received the same exact loan amount...the rate would be lower on the "Create the LLC" loan when you refinance. It is an advanced strategy but if implemented it has several advantages to it. Also, just in case any others are reading this both of these strategies are for Fannie Mae and Freddie Mac loans. A commercial or portfolio loan would be a different discussion and could have different rules....but they could have similar rules too but these posts are to specifically answer the Fannie/Freddie scenario. Feel free to tag me if you have anything additional. Thanks!