Please provide recommendations on how to find local Lenders,etc familiar with BRRRR strategy. Currently looking in Las Vegas.
It’s a straight up cash out refinance, like any other refi...any lender can do it.
Did you already purchase the property? Or are you still looking for a property? Are you looking to pay cash for the property or obtain financing initially?
A typical cash out is at 6 months with an LTV of 75% for a SFR investment property and 70% for a MFR.
Delayed financing is when you pay cash for the property and cash out refinance prior to 6 months - There are some restrictions with this route - you can only cash out a max of your initial investment.
Some lenders don't like BRRRR.
They think it is too risky, and may not want to lend to you.
One time, I told a lender that I'm going to BRRRR, they said too much leverage (their loan ratio to me was only 55%, and still said too much leverage to BRRR), and kind of hesitate to lend the money to me.
Since then, I never told any other lender that it will be BRRRR. I just told them I want the cash-out refinance, and need the money for improvements etc, but I never mention BRRRR again, I don't want to scare the lender away.
Are you using a portfolio lender then?
A conventional lender follows Fannie and Freddie guidelines and can lend 75% LTV on a SFR and 70% LTV on a MFR for an investment property.
Yes, double digit properties, max out conventional loan already, must use portfolio loan.