Brrr method

[Ryan Keenan]

hi bp, question about the brrr strategy. Is it an option to take out a regular bank loan say for 50,0000 buy a house, rehab it then refinance out? barring  all the numbers worked. Specifically using the banks money to buy and my own money to rehab is my question. Thanks

Ryan

[Joshua D.]

@Tyson Hosey

Mobile home was the best dang deal we ever bought. Not because it cash-flows $550 a month after expenses (although that's cool) but because we have done all of our deals after that one with no cash outa pocket. 1 of them we even financed all the rehab costs, but stopped doing that just cuz we have a bit more cash. 

Keep in mind these are lower price point purchases all of them have been in the 40-50k buy point. the mobile has an as is value of about 30k and no other leans so banks love it as collateral. 

@Ryan Keenan

I gave the particulars of what we are getting in the post above. these are not the best terms in the US for "in-House" loans but they are good for what we do. These loans are usually only found at small regional banks or Credit unions think small. Ask about their lending products that they keep on their books not the ones they sell out to other institutions. They are way more flexible with what they can buy. usually 75-80% LTV. If one bank tells you they have nothing for you, ask 6 others. You arnt trying hard enough if you haven't jangled a lot of bank doors.

Good luck out there!