BRRRR

[Riteash Tiwari]

Hi

I am newbie and listening to Brandon Turner's book where he mentioned Buying, Rehab, Rent, Refinance and Repeat ( BRRRR) Strategy. I am not following one aspects of it, any help would be highly appreciated, as I feel like I am stuck here. My understanding is that after buying few properties one's earning to debt ration reaches such that long term conventional financing from bank does not remain the option. I can understand, one arrange funding from private lender or other mean to buy property for BRRRR strategy. Funding from private lenders are for short term only. Strategy suggests, after rehab, and renting, refinance the property. For buy and hold investment, is not that at this stage one needs long term conventional type of refinance? This is the part I am not following. From who and where to refinance this property, as I said earlier after debt to earning ration reached maximum, how can bank refinance this property? Along the same line, how can then I repeat BRRR, with above constraint?

Please advice.

Thanks 

[Rick Pozos]

I think you are worrying about things that are WAY far down the road. Get a wholesale deal done first. Try doing a rehab. Get some experience before you are worrying about not having the credit to have so many loans. I think you will find over the next few years of investing that there are other ways to finance deals, as an EXPERIENCED rehabber and/or wholesaler. Your knowledge will increase as you do more deals and network with other investors.