How do you do BRRR if you're in bankruptcy?

Question

Let's say I'm in the midst of Ch. 7 bankruptcy and I have a nice paying job that allows me to save up about $30k per annum for a rental property to BRRR out. Saving up for the down payment/rehabs/closing costs/etc. wouldn't be an issue here, but I'm more worried about how I'd get a loan to cover the rest + do a cash-out refinance. And perhaps there would be more situations that would be difficult that I haven't mentioned yet.

So how would it work? Is it still possible to do BRRR while in bankruptcy?

Tyrone Osilesi · Answer

It’ll be tough for you to BRRRR unless you bring in a partner with a more favorable credit profile. Lenders are going to take into consideration your credit profile during the refi and that will very likely negatively affect you. I know it sucks to hear, but remedy that financial situation first would be my advice. Or, find other ways to invest in RE. Good luck!

Joseph Cacciapaglia · Answer

You may be able to get private money loans or find a partner to help you qualify for financing. In general it's difficult, if not impossible, to qualify for any sort of traditional investment loans in the situation that you're describing. I know it's not what you want to hear, but it's just how it is. You may be better off investing your cash into other peoples' deals. You can still get great returns doing that, and then you don't have to qualify for financing.

How do you do BRRR if you're in bankruptcy?

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