Myself and fellow business partners are pursuing our first rental property. We plan on using the BRRRR strategy to grow our portfolio, which will consist of single family homes in southeast Michigan (tri-county area). Currently, we are talking to different lenders in the area. Looking for lenders in the area that have experience in working with real estate investors (using the BRRRR strategy). Any recommendations? Also, I have read a little bit about the concept of a "Delayed Finance Program". Does this simply mean including rehab costs in the initial loan? I didn't think banks did this. Thank you in advance.
Im partial to using a broker for obvious reasons :P
There are conventional 30 year term loans available to single family investors who do the BRRRR approach. Limits is that the loan is in the name of individuals and not any LLCs. Also cannot have more than 4 mortgaged properties in your name at one time. So they have to cycle off once you get to 4.
These are advantageous for small, initial investors. But if you already own more than 4 mortgaged properties they wont work. Maybe a local bank or hard money lender is better for larger investors.
But I'm happy to answer questions fro you .
I wrote this article a while back on finding backs for BRRRR refinancing, hopefully it helps: https://www.biggerpockets.com/renewsblog/find-banks-fund-investments/