How does BRRRRing effect your credit score ?

[Greg Gaudet]

I built my credit up from a 570 to an 810 in about 3-4 years. Then this year I Bought my first 3 long term rentals and each one I buy comes with 2 hard hits on my credit (I haven’t even refi’d any of them yet, I’m trying to accumulate a lot of equity and reinvest it to maybe a MF or other higher price property). I’m Working on #4 now, and I’m wondering for the guys that have BRRRd or even just bought a lot of properties w mortgages, how does your credit hold up once you have 12, 15, or even 20 hard inquiries on your credit? And also acquiring all these new loans brings my average age of credit history down quickly. I was at 7 years average age and 2 hard inquiries, and now I’m at 3 years and have 8 hard hits so far. My score is still around 785, so we’re good so far, but it has slowly crept down as I’ve done each deal. I know they’ll fall off after two years, but still if I’m doing 3-5 a year I could easily have 20+ hard inquiries on my score and 1 year average age of account. Look forward to hearing from more experienced investors and how their credit has handled their success!

[Kenneth Garrett]

@Greg Gaudet

Great job on building your credit score. Anything over 760 will get you the best rates on loans. Yes the hard inquiries will have a minor hit on your score. Usually a point for each depending on how many. We try to use the same lender on our BRRRR refinances so that way they only run the credit once a year. Eventually you will need to use multiple lenders as you will max out the ability to borrow from one bank

Great job and keep up the good work..