I have a Brrrr question

[Thomas Brandon Petty]

I'm going to start out this by saying I am new and curious so I haven't dug too deep into this subject yet. When doing a Brrrr, I am confused on how you pay back your lenders after you refinance. If I borrow money and I'm not able to get all of my money out of the brrrr, how am I supposed to pay back lenders, and/or repeat. Are you supposed to do multiple brrrrs before you pay back your lenders, or do you need to get a new lender for every brrrr?

[Kenneth Garrett]

@Thomas Brandon Petty

It works like this;

Purchase $100K.   
Rehab 20K.  
Private Lender Loan 120K  
Refinance at $160K.   
Refinance at 80% $128,000.   
Say you borrowed money at 10% for 4 months you owe them $4000.  
Total expenses $124,000 not counting utilities property taxes etc.    

Refinance 128,000 pay back lender $124,000 and you have $4000 left to do what you want.  Then repeat the process.