Looking to BRRRR in Colorado

[Chase Vettese]

Hi All,

New to investing but have been following Biggerpockets for awhile. I am looking to get started with BRRRR investing in Denver. I am thinking of a strategy of Buying a wholesale prop with Hard money lending then getting a Conventional Loan to pull the money out.

I wanted to see if this is the common route? I heard on the BRRRR podcast that getting a Conventional loan then refi'ing is the lazy way (and costly).

I understand this post is probably repetative from others but any help would be great.

Thank you!

[Mark Sanderson]

Hi Chase,

That's a common route when purchasing a property that won't qualify for a conventional loan. 

Once the property is rehabbed and you have equity in the property you can replace the hard money loan with a conventional loan. 

I'm seeing some lenders providing a "long term rental" rehab program that would eliminate the refinancing. I don't know that they are going to want / let you to pull money out immediately.

I would suggest reviewing a bunch of lenders and seeing what programs they have.

Start with the lenders at - https://www.biggerpockets.com/companies/hard-money

Another option is to establish an LLC and get corporate credit / business funding. That way you have startup funding and have more flexibility with some of the different lender programs.