SDIRA - BRRRR

[Jeremy Paschedag]

Hello, while I'm waiting on money to be transferred to my SDIRA I'm wanting to get some info.

My SDIRA currently doesn't have any properties. My plan is to buy a MFR cash, rehab, rent, refi. On the refi, am I correct in that I can only get up to 65% back due to the SDIRA? If so, I'm not sure I'd be able to get what will be put into it. Would it make more sense after the first property refi, to buy the next properties with 25% down and use BRRRR from there forward until I'm near my reserves?

What are your thoughts on pulling all of my money out of my SDIRA/401k's, take the hit, then use BRRRR?

Thanks!

[Dmitriy Fomichenko]

@Jeremy Paschedag

There is only a handful of institutional lenders offering non-recourse financing for retirement accounts. Most of them will finance the purchase of an investment property as well as do a cash-out refi. However, on the cash out you can only use the purchase price, not the after repair value. In order to use the market value you will have to wait, with some lenders 3-years. Also, the most you can finance is the 70% of the value of the property, but in some cases depending on the location and the property type it will be 50%.

I don't know the terms for each lender so if you wish to check directly with them feel free to send me a PM and I'll get you the list of lenders.