Multifamily BRRRR loan question

[Chris Irvin]

I am currently reading the Multifamily Millionaire series and have a question regarding the BRRRR method. If I plan on using a cash-out refinance commercial loan (5+ units) and am going to use a mortgage broker to find the best loan, how do I get the financing lined up prior to the purchase of the property? Will the broker go out and identify the best lender prior to me looking for a property? How do I get the information about seasoning, rate, term, etc, so that I can properly run the numbers on properties? I am trying to follow the BRRRR method of building a team prior to searching for properties.

Thank you!

[Bryan Mitchell]

Quote from @Chris Irvin:

I am currently reading the Multifamily Millionaire series and have a question regarding the BRRRR method. If I plan on using a cash-out refinance commercial loan (5+ units) and am going to use a mortgage broker to find the best loan, how do I get the financing lined up prior to the purchase of the property? Will the broker go out and identify the best lender prior to me looking for a property? How do I get the information about seasoning, rate, term, etc, so that I can properly run the numbers on properties? I am trying to follow the BRRRR method of building a team prior to searching for properties.

Thank you!

Short answer, yes. Let the broker know what you plan to do so you can find the right product. You can use the BP calculator to help you evaluate the deal. You’ll need to get accurate assessments of the renovation costs and what the property will be worth after all work is done. As you know the bank will use their appraiser for the final valuation. That and the terms of the new loan will determine how much of your money you can get back out of the deal.