Re-finance options on the BRRRR method

[Travis M.]

Ok, so we have a fully functional operation going sourcing, flipping and selling homes. I want to start to build wealth using the BRRRR method instead of selling the homes. Looking for some more insight as to how to immediately re-fi out of renovation after project is complete and tenant is in

We do not need money to source or renovate the homes just to refinance out of them as soon as we have a tenant in.  

Possible? Thoughts? Can anyone suggest a lender to work with? 

We are in NJ 

[Andrew Postell]

@Travis M. banks will absolutely lend on investment properties.  You have 2 main stages really.

1. If you are refinancing AFTER the rehab then the lender should be giving you the full ARV for the property.
2. If you are refinancing DURING the rehab then you will still get the full ARV but your rate will be a little high since this will be a rehab loan.

This strategy does depend on HOW you acquired the properties as well. So if you purchased with cash, that will have different outcomes than if you purchased with hard money or some other type of loan. Likewise the TYPE of property will play an affect to. So a SFH should be able to refinance 75%-85% of the ARV.

If you have more of those details to share I can certainly provide more specifics on how this will affect your Refinance step of the BRRRR strategy.

Also, if you are looking for an investor friendly lender please post this in the New Jersey forum.  There should be lots of people in that forum with suggestions.

Ask away if you have any other questions.  Thanks!