Brrrr

[Matt Roberts]

I am finishing up rehabbing my second house using the brrrr strategy. Does it make much of a difference which bank I go to for the mortgage? What are the pros and cons of big banks, small banks, credit unions or should I use a mortgage broker?

[Jeff Phelps]

I recently participated in a BP's webinar, hosted by Brandon Turner, on the BRRRR investment strategy. Very insightful, and i would highly recommend! During the webinar, it was emphasized to seek out "Portfolio Lenders" to refi your rehab. Portfolio lenders are are small organizations, with 8-12 local branches. The benefit of refinancing through a portfolio lender is that that use their own capital to conduct business, as opposed to a large bank/lender who will funnel your loan through Fannie & Freddie. I think there is opportunity to create a more personal, lasting relationship with a smaller lender, as well. In addition, a portfolio lender will generally refi a larger percentage of the ARV of the property. I hope this information aids you in your future deals. Best of luck!