I am doing a cash out refi on my personal property so we have the cash to buy a BRRRR. This is our first time doing this and after reviewing the refinance mortgage paperwork there is a page for the commercial purpose disclosure stating whether or not this money will be used for future commercial or business purpose. Is there anything I should be worried about with this or should I just go ahead and check the box that I will be using for business?
@Lynn Anthony this is not a normal question that lenders ask. If you are buying a commercial piece of property it shouldn't matter....but your lender might have a specific problem with it. However, it doesn't sound like you are buying a commercial property, right? You are looking to purchase a residential property to use the BRRRR method with? Unless you are buying a gas station or an office building or something I would say you aren't buying a commercial piece of real estate anyway. Hope this makes sense in some way. Thanks!
@Andrew Postell Thank you. You are correct we are going to use the money to buy a SFH and BRRRR. I will just check that it is not for business purposes.
@Lynn Anthony did you guys take enough out to put 100% of your BRRRR?
I'm at 50% of the cash to get my first but not sure where to turn next in the process - Hard Money or Private? I feel like I'm falling back towards traditional but don't think that'll work with BRRRR.
@Adam Rust we haven't found a property yet. We are doing the cash out refi on our personal property so we have money to BRRRR. If we do not have enough we might have to do hard money or conventional loan.
@Lynn Anthony get as much as you can from your refi. I made the mistake of only getting $20k when I could have got $60k. Now I'm trying to find hard or private money to subsidize so I can BRRRR.
Good luck guys!