Using investors with a BRRRR
Hi BP!
My partner and I are going to attempt to do our first BRRRR deal. We understand how to structure the deal, run numbers on the deal, and most of the logistics.
One thing I’m really struggling to understand is going on title for the property. Now, I believe a typical deal looks like this —- You find a deal, get an investor to put up the capital for a downpayment on a short term loan, renovations and carrying costs. Now, when you go to refinance, should you go on title with the investor or how does that work? It was always my understanding that the investor goes on title (as your debt to income will be too high to do so after doing this a few times) and then you would have a lawyer do up a 3rd party contract stating you own the property and the proceeds 50/50 with the investor
Is there someone out there, Maybe a lender, who might be able to clarify this for me? That would be GREATLY appreciated.
Thank you BP!