Financing - How do you get financing for Renovations?

[Madylen Barberan]

I am just a couple weeks into my REI journey and I am learning a lot! I am a bit confused on when it comes to the financing on BRRRR or fix and flips. How does one get the financing for the renovation costs? Is that factored into the initial loan when purchasing the house or is a separate construction loan or additional financing methods needed to cover the rehab costs? Thanks!

[Caleb Brown]

Rehab is either covered with cash or the loan product. Could be a construction loan or hard money. If you use a hard money loan or construction loan then you would refi into a longer term product