Pre-approval for BRRR

[Nathalie Chew]

Hi all, 

I am Nathalie from North Carolina, I'm a newbie in Real Estate investing in Raleigh, Research Triangle Park area. 

I'm interested in BRRRR strategy to accumulate rental property.

I know one of the first steps is to get pre-approval, and I know that If I were to purchase the traditional way, I'll call up banks and get conventional loan pre-approval. (right?)

However, If I were to do it the BRRRR way, what kind of pre-approval should I get?

-Should I acquire a conventional loan pre-approval as well?

-or Should I get separate pre-approvals from Private lender as well as refinance agent?

Hope to get some answers from you awesome people! :)
I'm trying to learn as much as I can !! 

[Alexander Felice]

how are you trying to buy the property?

If you're buying a distressed property you'll need a renovation loan/hard money, or pay with private money (yours or someone elses). 

I do recommend you talk to whatever lender you're going to do the final loan with BEFORE you purchase. However, buying a property that needs repair means you'll be locked out of traditional lending products. You need to get the refi done first. 

pre-approval is usually reserved for people who are buying retail, BRRRR usually means you're buying distressed, so you're right in that you want to adjust your approach a bit. It depends on how you intend to fund each part of the deal.