Hard money on a brrrr?

[Cody Beard]

I am just starting out, and I have come across several properties that may be a good deal. The hard part of course is finding financing. Is it effective/lucrative to use hard money on a Brrrr? To me, it seems hard money would be best used in a buy and flip kind of deal. I'm looking to buy and use the Brrrr strategy.

[Tarik Turner]

There are HML who provide 100% of the purchase and rehab costs but you still have out of pocket costs such as origination points and underwriting fees you would also have to show a certain % of cash in reserves to get approved for the deal.

Long Story short 100% financing doesn't = $0 out of pocket 

Yes it is possible to use an HML for an auction purchase but it depends on the type of auction and the time given to close on the property