Sourcing a loan for a BRRRR Investment

[Adam Peacock]

Hey folks,

I am stepping through a multi-family BRRR investment with 5+ units but trying to make heads or tails of the lending options that serve this specific use case. I understand the final cash-out commercial loan which is secured after the property is rented but I'm unclear the type of potential lender for the initial investment. Do I approach a hard money lender assuming they will wrap the property + rehab cost into the same short-term loan, do I treat the initial investment using hard money lending as though it is a flip or other? Apologies, I've done a lot of reading and most of what I've read did not go into this level of detail and I'm trying to educate myself so as not to waste the time of any potential lender.

Or are there detailed materials I can buy or read that discusses this aspect of the BRRRR strategy in detail?

Would anyone be willing to share how they went about their own initial investment with a 5+ unit property where they required a lender for the initial phase?

Thanks!