Best Loans for BRRRR

[Michelle Garcia]

Greetings all, 

I am new to the bigger pockets community, Hi! I am curious to know your opinions on the best type of loans for a BRRRR. I plan to be pre-approved before house hunting to understand my budget. Wish I had all cash but this is my first go. Thoughts, comments, suggestions?

[Aubrey Maldonado]

Hey Michelle! 

Hard money or private money loans are popular ways to go if you're looking to get a BRRRR property and refinance quickly if you don't have the cash. Hard and private money can be expensive and some lenders require a certain amount of experience, especially with private money. Another factor to keep in mind is that hard money and private money lenders generally require an LLC or some type of company structure to borrow from them. I would start checking with the hard money lenders (there are quite a few here on BP) and see what experience they require and what costs are involved.

I would also check with local banks and see what they have to offer. I know a bank that has financed short-term rehabs in the past and partnered with a local lender to refinance into a long-term loan. It takes some calling around and talking to the right people, but you might be able to find something that you can refinance in 6-9 months. Best wishes to you!