Cash - The only way to fund a BRRR?

[Mike Trzaska]

I'm underway on my first BRRRR deal which I initially financed with my own hard-earned and diligently saved capital. I want to have 5 units by the end of this year, but the process seems so linear. Purchase> Renovate> Wait 6 Months to Refi>Repeat. I know there are other avenues to fund the initial purchase and renovation of a BRRRR investment such as hard money and private money, but would like to hear alternative ways to fund the purchase and rehab of a BRRRR and pros/cons. I know others have scaled way quicker than what I am planning without taking private or hard money.

[Todd Rasmussen]

@Mike Trzaska

Hi Mike,

You don't have to wait, there are strategies to avoid the seasoning period through putting a lien on the property at the time of closing or putting the rehab funds into escrow and having them appear on the settlement statement. This would allow you to use traditional conforming loans until you maxed out your number. After that just find a traditional non conforming lender that doesn't have seasoning periods. Our primary non conforming lender offers 15 year notes amortized over 30 years, 80% LTV and no seasoning.