Questions about BRRRR

[Justin Rucker]

So I am researching this strategy. 

When going to the bank to make sure they will refinance my property before I purchase it with hard money or private money. What kind of loan is this that I am asking for? Is it a cash out refinance loan? Also, In a conventional loan, banks require a 20-30% down payment. Will I have to put down a down payment during the refinance portion of this strategy? If so can you get the money from the hard money loan to cover that? 

[Brad Hammond]

@Justin Rucker.  This is more or less how the process would work.  

1. Find a property and purchase it in cash with hard money.  You can finance through a conventional loan as well but it will require 20% down.  

2. Rehab the property and put a tenant in place.

3. You will refinance the property with a new conventional loan.  They will require you to have 20% equity in the property so you will need to find a good deal.  

4. With the money you got from refinancing, you will pay off your hard money lender.