I am looking for the most flexible lender for BRRRR and fix & flip

Investor · Monroe, Lackawanna County PA · Member since 2016 · 36 posts · 25 votes

Hi dear friend's!

I am doing BRRRRs and fix & flips in the Scranton PA area, and I started using hard money, and I don't like the part of the construction loan that the company that I am using is giving me a really hard time getting the construction money, they are only giving me when the construction is totally complete, and in the mean time I need to fund it from my pocket, and this is going on even after I did with them a lot of deals, they are not getting more flexible with me.

I would like to know if some of you invesers have had a more flexible lender I should be able to do more flips at once?

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Robin SimonBusiness Member

Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes

Quote from @Abraham Berkowitz:

Hi dear friend's!

I would like to know if some of you invesers have had a more flexible lender I should be able to do more flips at once?

Hi - yes, plenty of lenders on here that can help with that - you are likely going to want to use a private direct lenderthat does both hard money and DSCR Loans (so can cover in house both the loan for the purchase/reno and then the refinance if you are doing BRRRR)

Also sharing an article published here on BP last year on this topic which should help as well!

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

[email protected]

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Taylor DaschBusiness Member
Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
1y
I would reach out to @Jay Hurst He has so many options and they do in house funding (I think).
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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
1y
Quote from @Abraham Berkowitz:

Hi dear friend's!
I am doing BRRRRs and fix & flips in the Scranton PA area, and I started using hard money, and I don't like the part of the construction loan that the company that I am using is giving me a really hard time getting the construction money, they are only giving me when the construction is totally complete, and in the mean time I need to fund it from my pocket, and this is going on even after I did with them a lot of deals, they are not getting more flexible with me.
I would like to know if some of you invesers have had a more flexible lender I should be able to do more flips at once?

Hi - yes, plenty of lenders on here that can help with that - you are likely going to want to use a private direct lenderthat does both hard money and DSCR Loans (so can cover in house both the loan for the purchase/reno and then the refinance if you are doing BRRRR)
Also sharing an article published here on BP last year on this topic which should help as well!
https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...
[email protected]
Harpoon Capital514 Reviews
Website View Page
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Nick BelskyBusiness Member
Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
1y
@Abraham Berkowitz
Typically, lenders will allow you to take several draws, not only one. That is abnormal. While some do impose limitations, they usually allow more than enough to complete the job. Many lenders will also allows draws based on invoicing versus reimbursement, meaning you don't have to fund it out of pocket first, then reimburse yourself. Simply provide the invoice when requesting the draw and then the process will go through so you can pay the contractor from the draw versus your pocket. Most draw processes only take 2-5 days, sometimes faster, so your contractor would have to be willing to wait a few days once they invoice you, but many of my client's prefer lenders who do draws like this.
Cheers!
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
1y
Quote from @Abraham Berkowitz:

Hi dear friend's!
I am doing BRRRRs and fix & flips in the Scranton PA area, and I started using hard money, and I don't like the part of the construction loan that the company that I am using is giving me a really hard time getting the construction money, they are only giving me when the construction is totally complete, and in the mean time I need to fund it from my pocket, and this is going on even after I did with them a lot of deals, they are not getting more flexible with me.
I would like to know if some of you invesers have had a more flexible lender I should be able to do more flips at once?

Have you tried searching local?
[email protected]818-269-7983
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David Pearl
Lender · Member since 2024 · 121 posts · 14 votes
1y
Yes. Very unusual that they are making you complete the project before releasing the draw. Typically draws happen when you submit a draw request for the portion of work that has been completed, in increments of your choosing.
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Abraham Berkowitz
OP
Investor · Monroe, Lackawanna County PA · Member since 2016 · 36 posts · 25 votes
1y
Quote from @Robin Simon:

Quote from @Abraham Berkowitz:

Hi dear friend's!
I am doing BRRRRs and fix & flips in the Scranton PA area, and I started using hard money, and I don't like the part of the construction loan that the company that I am using is giving me a really hard time getting the construction money, they are only giving me when the construction is totally complete, and in the mean time I need to fund it from my pocket, and this is going on even after I did with them a lot of deals, they are not getting more flexible with me.
I would like to know if some of you invesers have had a more flexible lender I should be able to do more flips at once?

Hi - yes, plenty of lenders on here that can help with that - you are likely going to want to use a private direct lenderthat does both hard money and DSCR Loans (so can cover in house both the loan for the purchase/reno and then the refinance if you are doing BRRRR)
Also sharing an article published here on BP last year on this topic which should help as well!
https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

Thank you @Robin Simon, for your info and for your sharing that article, it’s really appreciated.

1 Reply
Abraham Berkowitz
OP
Investor · Monroe, Lackawanna County PA · Member since 2016 · 36 posts · 25 votes
1y
Quote from @Nick Belsky:

@Abraham Berkowitz
Typically, lenders will allow you to take several draws, not only one. That is abnormal. While some do impose limitations, they usually allow more than enough to complete the job. Many lenders will also allows draws based on invoicing versus reimbursement, meaning you don't have to fund it out of pocket first, then reimburse yourself. Simply provide the invoice when requesting the draw and then the process will go through so you can pay the contractor from the draw versus your pocket. Most draw processes only take 2-5 days, sometimes faster, so your contractor would have to be willing to wait a few days once they invoice you, but many of my client's prefer lenders who do draws like this.
Cheers!

Thank you @Nick Belsky for your massive info, I am glad that there’s out there more flexible lenders, and I will be looking for the best ones.

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