No money down deal with BRRRR strategy

[Johnnie B. Wright]

How to do a no money down deal? With the purpose of proceeding within the BRRRR Strategy?

How many possible ways could this be possible?

[Jay Hinrichs]

Originally posted by @Jonathan Greene:

There are zero ways possible.

How can you do the first two letters (Buy and Rehab) with no money down? Who wants to finance that? Maybe if you've done 50 deals and they know you are safe, but as a newer investor there are no ways to do this in the real world.

In the day before the GFC this is how all OOS turn key worked:

WEst coast marketing companies would get buyers  ( these folks are still in business as we know)

rehabber in the market Pick any turn key market would find a home that they could buy rehab and sell at 65% ARV which today pretty tough but in those days my company did close to 2000 of them as the A and D lender.

So we would require ONLY 1k down from the borrower  ( so not no money down but pretty close)  I would fund the purchase and rehab the rehaber in the market  say Detroit Chicago Memphis Jackson KC Indy those were all my markets.

would do the rehab and once it was done they would do a refinance now my LA based buyer was already pre approved for the take out ( REFI) Just subject to a 442.. we routinely spun these deals in 90 to 110 days start to finish.. the LA based buyer would then do a 75% cash out refi and pay me off  and they would normally pocket about 5 to 8k in cash that was to be used for reserves.. so no money down and actually cash out.

My flipper made his money the west coast marketing guys got their commish and I made my fee's on the HML.. this is how turn key worked then .. When the GFC hit that model BRRRR went the way of the dodo bird you could not get an investor refi for many years.

fast forward to BP and today its all come full circle. and I even do this for VERY select clients today they have no money in the deals and end up with a fully levered rental.. I have no personal interest in rentals but I love being the cog that makes it all work.

other HML will do this for U but you will have to have some cash down and cash reserves etc etc. but it can happen.

but for most folks I think its far too risky and your better off just putting 20 ro 25% down until you get some experience.