100% LTV Home Equity Loan Experience Using the BRRR Strategy?

7 Replies

Does anyone have any feedback/experience getting 100%, 90% LTV on a home equity loan? Refinance, Etc...

For Example:

If are in a high demand market where you cannot acquire a property under market value. But still want to apply the BRRR Strategy to recoup as much of your downpayment money + rehab money out so you can (R)repeat the buying process and expand your portfolio without running out of capital.

Thanks in advance for all responses.  

I know with my lender I use that you can purchase a home all cash and then do a cash out refi starting the very next day with no seasoning.  If your all in for example $70k and it appraises for $100k you will get all of your money back. 

A few years back I put a HELOC against my primary residence but they only do a 75% LTV - mortgage balance.

Good luck

Thanks for the response Curt!

My example to everyone would be:

Purchase Price/Appraised Price  $450,000

20% down (90K)

Loan = $360,000

Is there/does anyone know: if there's a product where you can get a second mortgage or Equity Loan for the additional money you originally put in as a down payment?  So basically 100% financing.

If there is then it seems like it would make the last (R)peat step far easier.

Thanks!

Originally posted by @Ryan Rogers :

Thanks for the response Curt!

My example to everyone would be:

Purchase Price/Appraised Price  $450,000

20% down (90K)

Loan = $360,000

Is there/does anyone know: if there's a product where you can get a second mortgage or Equity Loan for the additional money you originally put in as a down payment?  So basically 100% financing.

If there is then it seems like it would make the last (R)peat step far easier.

Thanks!

 You could try P2P unsecured lending like prosper.com.  Your interest rate is pretty much determined by your credit score.  

I finance out at up to 80% LTV, but the lender caps out the max loan amount at purchase + rehab costs. So I can get all the cash back out if I bought low enough and rehabbed efficiently and do it again, but I can't add to the pile.