Do I have to buy cash to BRRRR???

[NIcholas Hamel]

Hey everyone quick question for you. Is it necessary to buy cash when you BRRRR or does financing work just the same? Thanks!

Nick

[Kristin Feerst]

Usually they are cash purchases, but you can use private or hard money to lend on the cash buy plus the rehab costs.

You will still need your own cash to pay the down payment, closing costs, insurance and to front the construction costs before draws.  The construction loan is a reimbursement loan.

BRRRR is cash intensive and make sure you have contingency and a back up plan so you don't lose the property if construction costs go way over budget.

I just started my first BRRRR and have a decent amount of cash saved, but I am still anxious because its a lot of capital to front.

I wouldn't get into it without cash to cover the down payment + closing costs + 1/2 rehab costs + holding costs  + 15% contingency