Refi issues! BRRR complete and now a bank surprise!
Has anyone ever run into this issue and how do we navigate it?
We bought our first BRRRR deal as a bank foreclosure. Took weeks to clean it up and months to rehab. We fixed it up and put tenants in it and got an appraisal done for the bank. All the steps that Brandon and David talk about. We were using private money and had some left over. So not wanting that money to sit idle we purchased a second house that we could BRRRR once we refinanced the first house. All is good except that the day the bank is supposed to close the refi they tell us that all of lines of credit and credit cards need to be at zero to be approved! Now not wanting to sit idle while waiting for the banks we have started the second house rehab using the lines of credits and credit cards. How are we supposed to clear those up and why is this not told to anyone before they refi?! How are you supposed to have your cake and eat it too? It's takes money to rehab a property but your supposed to have money to refi?? Any advice would be appreciated. Thanks for now