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Updated about 2 years ago,
How keep operating account strong on a BRRR
Does anyone have any tips or tricks to increase rehab budget on BRRR's from the bank? One of the most annoying things is blowing budget and then having to come up with extra capital at the end of a project. We all love to use the banks money..
Here's where I'm at with making sure draws cover construction:
- Add 10% or so to rehab budget
- Front load Rough demo, MEP's and roof. This way grows operating account off the bat.
- I've heard of people charging development fees to their construction business. Has anyone had experience with this seems like a good idea if you can get bank behind it.
Any other tips would be great! And yes I know spend less on rehab..