HOW TO REFINANCE A BRRRR IN LESS THAN 2 MONTHS

[Logan Kirchhoff]

New to the game, I have two single families so far. Went conventional on the first with 25% down got creative with a construction loan to fund the second this month. How are you guys refinancing in such quick time frames? All 4 lenders I've gone to said 6 month minimum. Without the ability to finish BRRRRing these 2 properties I'll be at a standstill for 6 months. Please help!

[Jerry Padilla]

@Logan Kirchhoff

The strategy is paying cash initially, and then including the renovation costs in the initial purchase. 

• On an investment property; A SFR if you have #1-10 mortgaged properties, you can pull out up to 75% of the equity and on 2-4 units is up to 70% equity, for conventional financing.

If you include on your closing statements (which vary state to state - HUD-1/ALTA statement ) the renovation costs - and have them charged at closing...... This renovation cost now becomes an initial closing cost and can be included with the max that you are able to pull out prior to 6 months.

An option that I can think of now is borrowing hard money or private money against the properties and then rate and term refinancing them. There would be costs associated with these closings, so not sure if it is really worth it. If this isn't an option than you can start the process of refinancing prior to 6 months and then close the day after the 6 month mark.