All Forum Posts by: Nathanael Greene

I have a hypothetical question but how difficult would it be to BRRRR 100 properties a year while having a team of contractors ,real estate angents,attorneys , investors and others. I know the waiting period to refi and get the money back that you put in to the repairs and to pay the contractors will be a long wait but what if you took out a loan to pay those contractors and as you refi you pay back the loan.I would like your insights,knowledge on loans and refinances along with what has helped and not helped during BRRRR.

Originally posted by @David Chappell:

Originally posted by @Nathanael Greene:

Originally posted by @David Chappell:

Originally posted by @Nathanael Greene:

So would a hard money lender allow you to refinance without a seasonal period ? Like if you finished a renovation and then you wanted to refinance could you? And also what do you mean by the delayed financing option only allowing you to get the purchase and rehab money back ?

Correct, you would have two options. You could finance right after the rehab is done and only get the $$ you spent on the propety (delayed financing option). Option 2 would be to wait 6 months and get it refinanced based on ARV and pay back the hard money lender.

That makes sense but also another really odd question but would it even be possible to do delayed financing and get the money you put into it back and then at the 6 month mark refinance it for the ARV?

You could technically do that, but you would be paying 3-5% closing costs twice. My first property I refinanced with a 15yr HELOC through Regions right away and there were no closing costs, but I dont think they are doing those anymore.

 Could you get around the 6 month refinancing season by just refinancing with a different Bank?

How would you pay contractors in the fix and flip while they are finishing the work if all the money you are getting to pay them is coming after you sold the house? Is there a way you can get some line of credit or construction loan to pay them while they are working and then after it is sold you get the profit and pay back the credit or loan?

Originally posted by @David Chappell:

Originally posted by @Nathanael Greene:

So would a hard money lender allow you to refinance without a seasonal period ? Like if you finished a renovation and then you wanted to refinance could you? And also what do you mean by the delayed financing option only allowing you to get the purchase and rehab money back ?

Correct, you would have two options. You could finance right after the rehab is done and only get the $$ you spent on the propety (delayed financing option). Option 2 would be to wait 6 months and get it refinanced based on ARV and pay back the hard money lender.

That makes sense but also another really odd question but would it even be possible to do delayed financing and get the money you put into it back and then at the 6 month mark refinance it for the ARV?

Originally posted by @David Chappell:

Depending on where the $$ is coming from that is pretty tough. A common part they leave out about the BRRRR process is the 6 month seasoning period required to get a loan based on the ARV. The delayed financing option will let you get your purchase/rehab $$ back if done correctly before the 6 month seasoning period, but nothing extra. Not to mention the 60-90 day wait time most banks have for refinances. After your DTI is maxed out, or your 10 fannie/freddie loans you have to look into commercial lending which changes the dynamics of the financing and it may not be as lucrative as with traditional financing.

I personally took out a HELOC on my primary residence, purchased 3 properties in 6 months using the cash from that and am hoping to refinance all 3 and get 95% of my money back within 9 months, and I even feel like Im moving a little too

So would a hard money lender allow you to refinance without a seasonal period ? Like if you finished a renovation and then you wanted to refinance could you? And also what do you mean by the delayed financing option only allowing you to get the purchase and rehab money back ?

So would a hard money lender allow you to refinance without a seasonal period ? Like if you finished a renovation and then you wanted to refinance could you? And also what do you mean by the delayed financing option only allowing you to get the purchase and rehab money back ?

Is it actually possible to BRRRR 100 properties in a year and use them as rental properties?