All Forum Posts by: Rachel Kennedy

We are in Denver. Bought a flip in one of Denvers hottest neighborhoods. We made a HUGE mistake and lost track of our numbers. We are about 80% done but have invested $625K into a $640K ARV house (I know, stupid stupid mistake).

In order to lose as little money as possible on this we need some creative exit strategies.

This is awesome as I am trying to do this right now and having a hard time! Do you have anyone over at Axos bank you're working with? 

I'm in CO...so obviously they'd need to be able to lend here.

Michael Glist, do you have any short term options currently?

@Shaun Weekes apport $218K worth $300-310K

@Jared Rine we are in Colorado, just outside of Denver. The market is still great here. Our projected cash flow with the product we were hoping to get into was $500/month.

@Shaun Weekes we used hard money to purchase and financed 100% of the purchase price with the hard money 

We JUST finished a BRRR and are ready to refinance out of hard money, and then COVID happened and now the product we were using is no longer available. Credit is around 640, plenty of income to support the refinance but due to seasoning a traditional lender will not lend to us.

Is anyone else dealing with this? Found any solutions?

@Andrew Postell thank you much for your reply! Very helpful!

Refinancing out of our hard money for our first BRRRR project.

We have about $225K into the deal and ARV is $280K

Credit score is 665 which is what makes this hard and we are trying to do a no doc loan for ease and because my husband who is the sole owner of the LLC is employed by my real estate company and I only pay him "fun money". Terms are as follows: 6.5% interest with pre payment penalties for the first 60 months.Will lend 75% LTV. $10K in closing costs which seems super high.

Market rent is about $1900-2200 and PI would be $1243, PITI will likely be about $1450 so the cash flow still looks good.

What makes me nervous is the pre payment penalty. I don't want to get stuck at a 6.5% interest for 5 years if rates dip.

Any expert BRRRRers out there with insight for us?