BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated about 1 month ago, 10/23/2024
Is it possible to buy with no money out of pocket?
I have some buy and hold rentals and have never done a BRRRR. I have great credit but limited capital. I also have lots of connections all over the nation to help. Is there a strategy to do a BRRRR with little to no money out of my own pocket?
Hard money lender/DSCR - both are good options. Maybe 10% down with seller paying closing costs?
@Aristotle Kumpis
Possible yes likely no unless you have a ton of equity in other deals that can be cross collateralized
- Chris Seveney
Quote from @Aristotle Kumpis:
Are there any hard money lenders that lend 90%?
gotta hunt for them. I also recommend partnering like crazy!
Quote from @Aristotle Kumpis:
I have some buy and hold rentals and have never done a BRRRR. I have great credit but limited capital. I also have lots of connections all over the nation to help. Is there a strategy to do a BRRRR with little to no money out of my own pocket?
Are the properties you currently have cash flowing? If so you could pull equity out to begin the BRRRR process.
- Anderson S.
- [email protected]
- 1-917-830-7144
- Flipper/Rehabber
- Pittsburgh
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I think the short answer is... very difficult.
As @Chris Seveney said, is it possible? Sure.
Do you have a wealthy uncle that trusts you that would loan you 100% of the funds PLUS closing costs? Then there you go.
One thing I am looking to try to do but haven't done yet is buy something with zero down on seller finance, put the rehab on a 0% credit card, then refi the seller off in 12 months and pay back the card. This is (1) not something I'd recommend to a beginner, and (2) not something I've been able to do yet. And even this requires some funds - closing costs on the buy, monthly payments to the seller, and other holding costs, insurance, appraisal on the refi, etc.