BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Updated almost 4 years ago on . Most recent reply
A better way to BRRRR? BRRRR by selling to a spouse?
My wife sent me a TikTok Video that blew my mind. He outlines what essentially amounts to a BRRRR but with the caveat that the property is owned by his LLC and then sold to his wife. I assume this makes sense because the loan terms on a purchase are better than they are on a cash out refinance. Can anyone share any insight on this? I cant seem to find anything on this strategy from a mortgage lending, legal, or tax perspective.
Below is the link to the video
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
@Account Closed this video doesn't make any sense to me. If you sell the property, you have to pay closing costs again. You have to have a downpayment (if you use a loan, which the video owner states they did). You will have Capital Gains taxes if you sell it over what you paid....which the poster admits selling it for a higher value. I might make some guesses here on this video.....but I'll just limit my comment to that it doesn't make sense how this person describes this working.