BRRRR Question - Thinking outside of the box....Will it Work???

[Sam Mathew]

Hello BRRRR Investors. I have been doing the BRRRR strategy for some time now. The issue I seem to have it if I buy a property for $75k but improve the value to $150k in a few weeks, and try to do a delayed financing...the appraiser always sees the low price that you purchased it for just three weeks ago for the $75k and doesn't have much propensity to push far up to the $150k.

Has anyone attempted this...? To purchase a property in your own LLC name for cash, and then three weeks later instead of a delayed financing, just do a regular purchase in your personal name from your LLC for $150k (or even $140k or $130k). I say this becuase I find when the appraiser sees the $150k purchase, they try harder to justify the appraisal for it.

Now, I'm not any legal expert or appraisal professional, just wondering if this could work or even help.  Any feedback from anyone?

[Cameron Tope]

Hey Sam,

Way to think outside the box! However, I don't think this will help solve your problem as you'll still have a sale (75k to your LLC) in the comps.

I would look for another bank. The banks are able to call all the shots right now bc everyone is buying, selling and refinancing but that will change and they'll lose clients if they don't adapt. 

Shop around and start building a relationship with a great lender. They'll help you in good times and bad.