Assuming I have enough money for a down payment

7 Replies

Okay, @Alex Diaz with the BRRRR strategy it's a great idea to talk to traditional lenders ahead of time so you know for sure that you will be able to refinance out of the more expensive, short-term money. I would definitely review your finances with a lender to be sure you know exactly how much you will qualify for.

Have you figured out what you're going to do for the short-term loan? 

never hurts to have a conversation with a lender. 

Worst possible thing that can happen is you leave with more information and a goal for how to get where you need to go. 

education leads to action

@Daniel Haberkost thank you and yes I have a private money lender willing to let me borrow the money, in terms of the first loan am I able to refinance that same loan or would I have to purchase the property with my own money/private lenders money?

@Alex Diaz

So if you're doing a BRRRR then the property is likely going to be in pretty rough shape. If that's the case then you won't be able to get traditional financing on the property and will need your private lender to fund the initial acquisition. Then once it's fixed up and a tenant is in place you can refinance into the traditional 30 year mortgage.

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