I am very interested in the BRRRR strategy but have a question.

[Rebecca Wisner]

So I have listened to several podcasts and read about the BRRRR strategy and it is something I would like to pursue.

I am a traditional financing expert and have been originating mortgage loans for over 30 years and I understand how you can add the contractor to the closing statement and pay through escrow and then do a rate term refinance and get the funds back to pay off the existing loan and the construction costs. My question is, if you are a newer investor and your hard money lender wants you to put 10-20% down. How do you get that money back out on the refinance?