Quick Question about the BRRRR

[Taylor Johnson]

Just for clarification, when you use the BRRRR method:

1. Investor A loans cash to buy the property and pays for updates/repairs. Investor B refinances the property with a bank to pay Investor A back initial amount & repairs plus agreed interest?

or

2.  Investor A loans cash to buy the property and Investor B is responsible for updates/repairs and refinances with a bank to pay Investor A  back initial amount plus agreed interest?