BRRRR question/Dilema any help would be appreciated

8 Replies

Hi BP community,

I’m a business owner who does remodeling for a little over two years

I was a multi family manager for 19 years. (So tons of experience managing tenants)

Here is where I Need some help I'm looking to start my BRRRR portafolio in Atlanta or nearby markets

My dilema is once I buy the property with hard money ( as prices in Atlanta are a little over ($100k purchase plus rehab money) for a decent area.

I'm stuck on which bank/lender will help refinance the house after is rehabbed to pull out the profit to go on to next house with me been an owner with a young business.

Here is a little more info to help :

I have $50k available to invest

Have decent credit in the 670 to 700

I have my company tax filings from 2018 and 2019.

Have done several flips for myself

And have all the crews needed to do rehab to a house( they all work for my remodeling company)

What would you do ? How do I get the money out after the house is rented?

Who can lend to me personally/or my company to be able to refinance?

Thanks in advance.

I would recommend you line up a lender before you ever buy the home, but I guess it's too late for that. I recommend you put some kind of basic presentation together detailing your past experience, your financial standing, and then explain your current deal. Talk to multiple lenders until you find someone that works for you.

Originally posted by @Alejandro Vargas :

@Alejandro Vargas I’m still looking not even under contract with any properties yet

Have you read "Long Distance Real Estate Investing" by David Greene? He lines out the process fairly well, including how to find a lender.

 

@Alejandro Vargas

I would look for commercial lending in your case.  Your income is from your business.  Not the favorite concept for residential lenders (no W-2 income).  I always try to work with local lenders/credit unions.  Start contacting lenders and ask about what options are available to you.  You’ll get some no’s but keep calling. 

Hello Alejandro!

I agree with Nathan here that you should already be speaking to banks (perhaps your local community banks) to arrange refinance already. 

Certainly find out first what your local banks' criteria are and start preparing for refi, but sounds like are are well on your way there as most banks would refi a good candidate like you!

Good luck.


Best,


A

Are you a member of a local REIA or investor networking group? There should be several in a city the size of Atlanta. Join some local REI Facebook groups and create a post asking for lender referrals from other investors who are doing the BRRRR method. Create an LLC, put a personal financial statement together, and have your tax returns ready so that you can email them to the lenders. You are going to want to deal with commercial lenders at smaller banks and credit unions who do portfolio loans. Way easier to deal with and faster to complete loans.