BRRR method - confusion on the financing aspect

[Dana Sarcona]

Hi all - so I want to get into the buy, rehab, rent, refinance, repeat method of real estate. I have found single family homes in the area in which I am looking that need proper work. Here is where i get confused. On the refinancing part. I have listened to the BRRR podcast and have started to read the book on it.

My question is: HOW am i financing the FIRST sale of the home that needs rehab. Is this through a hard money lender? Can it be through a traditional lender with a down payment - though I don't have so much saved so down payment will be low.

But then you get to the refinance portion - where in the podcast they said the bank or the lender will finance you 75% of the new reassessed value of the home. So...they just give you cash to go buy another one? But don't you ALREADY have a loan with them that you have not paid off yet?

Does the BRRR method only work if you are using hard money or have full cash to buy the place yourself? So that you can THEN go to the bank and borrow a lump sum?

Very confused but have found a few places I love so would love some answers asap. Thank you so much,