BRRR help - What to do with money left in?

[Devon Mason]

Hi All,

What do you do with money left in a BRRR deal?
If you finance a project using 100% of other peoples money (hard money) and the project does not return 100% cash out on refinance, how do you finance the money left in (or what is left on the hard money loan)?

Any help is appreciated. 

[Jon Kelly]

@Devon Mason As @Tucker Cummings's said, you are responsible to make up the gap to repay the hard money lender(s). You can use your own funds or borrow from others to repay the lender. 

You can also order a new appraisal and maybe it will appraise higher from a different company. 

You can find another lender that will provide financing up to 80% LTV instead of 70-75%.

If this is a real example, I would suggest you write out all of the facts and numbers and people's responses can be more targeted to your situation. 

If this is a hypothetical and you're looking for information to overcome any fears of "what if" scenarios, hopefully we've provided enough examples of potential solutions.