Looking for clarity on buying/financing using brrrr

[Daniel Ahn]

Hi, can anyone give me clarity? When buying a brrrr property, you want to buy a property as low as you can that will give you a high ARV. That typically means that you want to look for properties that most banks won't loan on because of the condition of the property. That is where hard money, private lenders, cash, etc comes into place.

• Here is where I am confused. Does this mean that when buying a property, you need to buy the property for its full value? 

IE: A house cost 200k, you would use hard money, private lender, etc to get to get the 200k. Then rehab, rent & refinance it for ideally enough to all of your 200k + rehab cost back?

Does down payments not exist in the BRRRR strategy?