I am very interested in the BRRRR strategy but have a question.

[Rebecca Wisner]

So I have listened to several podcasts and read about the BRRRR strategy and it is something I would like to pursue.

I am a traditional financing expert and have been originating mortgage loans for over 30 years and I understand how you can add the contractor to the closing statement and pay through escrow and then do a rate term refinance and get the funds back to pay off the existing loan and the construction costs. My question is, if you are a newer investor and your hard money lender wants you to put 10-20% down. How do you get that money back out on the refinance?

[Alex Bekeza]

@Rebecca Wisner You can use commercial lending for any asset type or number of units. SFRs and 2-4s included. The advantage is that they're underwritten more like a multifamily loan in the sense that its primarily based on DSCR rather than the borrower's personal income. The other advantage is that you can use them for SFRs once you've surpassed your 10 conventional loan limit. Happy to chat about commercial lending anytime.