Updated almost 3 years ago on . Most recent reply
After Repair Value Loan
I currently have long term, short term, and two commercial properties.
Interested in doing my first rehab following the BRRR strategy. I have a great relationship with a few banks and one offered to give me a loan at the ARV at the time of purchase. I just give the bank a breakdown of the repairs that will be done, they send out an appraiser to value the home with the updates that will be done.
Example purchase price 300, rehab 50k, new value 450k. Bank gives me a loan for 450k when I purchase the home.
Are there any disadvantages when structuring financing like this? Any feedback is much appreciated!