Rehab and Refinance

[Brandon Laughridge]

Given mortgage lending scrutiny these days, how are investors making rehab and refinance strategies work (at scale)? Is it feasible to buy using cash or a LOC, rehab, and then refinance a "batch" of properties via a blanket loan?

[Ryan B.]

Go talk to a small local bank, not one of the big boys.

My local bank is giving me construction loans that I use to purchase and rehab rentals. When I am done with the rehab, they then refinance me into a balloon loan that they do for investors. As long as everything comes in under 85% ARV then I end up with nothing out of pocket except closing costs.

Small banks have a lot more wiggle room when it comes to creative financing.