BRRR - Closing twice is being very expensive.... Other options?

[Babu Ramadoss]

Hi

In BRRRR, you make two loans : Short-term Rehab loan upon purchase and long term regular loan at the end of rehab. For each of the loans, the closing costs comes to about 10 - 15% of the loan amount. So I end up paying almost 30% of the loan amount which makes me leave more cash in the deal than i expected. How do you guys manage this? The title costs are coming around 3K on every loan + Origination fee + document charges + escrowed money and several other line items constitute the total 30% costs. I tried using the same lender and title company for both the loans and yet the expenses are the same. Any thoughts?

[John Teachout]

Use cash for the acquisition and repair costs, then get your loan.