Chattanooga BRRRRR Lender?

[Vic Liang]

Hello Everyone! I just bought my first two duplexes in Chattanooga and I'm addicted to the cash flow right now. Unfortunately I made the mistake of tying up a lot of my money but I am in the process of saving up to be able to fund the next deal.

The next deal I want to do is going to be a BRRRR and I've been calling lenders who will do this. But I'm having trouble finding someone who will do it in Chattanooga and on the level that David Greene and Alex Felice talk about in Episode #301 of the BPP.

Are there any investors in the Chattanooga area that have a lender they can recommend??

[Brian Levredge]

For those still looking to employ this strategy, make sure you actually find the lender to do the take out financing prior to getting into the deal.  Appetite for residential with a lot of commercial lenders has diminished, especially with out of state borrowers.  They view it as riskier now due to the market cycle.  I'm here in Chattanooga and have a relationship with a number of banks.  Most won't touch residential or if they do they'll do it on a 15y instead of 20y.  This is complicated by the fact most will want to know your cost basis in the property and won't want to cash you out completely, again because they view it as riskier.  I'm sure there are lenders out there who still do this, it's just getting harder to do.