BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated almost 5 years ago, 03/12/2020
How to finance a real estate BRRRR deal
Hello everyone. I am a new member on BiggerPockets and and love the idea of doing big things in real estate investing. Had a few questions regarding the BRRRR strategy.
1) when we buy a property, does the lender typically pay the entire cost of the property plus the rehab? Is there a certain down payment we need to pay the lender?
2) in order to refinance I think we typically wait about one year. Are the monthly payments we make to the lender for this year similar to what we would pay on a conventional loan?(aside from paying higher interests)
3) Lastly. When we refinance, what exactly do we pay the BANK(assuming that our lender) if we’re not providing a down payment?
I’m sure these are simple questions but I’d like to understand the fundamentals and achieve great things. Thank you all!