Updated over 6 years ago on . Most recent reply
Using hard money to BRRRR multi-family rent / hold
HI everyone. I'm looking to get feedback and advice on the idea of using hard money, entirely, for the down payment and rehab, then doing a 12 month cash out refinance (maybe 6 month depending on lender) to go into a conventional mortgage to rent / hold a multi-family. What experiences can you share, advantages / drawbacks? Would you recommend this strategy? Thanks!
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getting a loan for the down payment sounds like private money.. Friends and family would be your best bet for that. However there are programs that offer 100% financing.. The borrower would still be expected to pay for all closing costs including origination fees Max all in cost is 65% of the ARV
Borrower would need to show about 15% of total loan costs for reserves and closing
Not sure if that's what you are looking for but it's out there