Question regarding BRRRR financing.
Has anyone been successful using a Hard Money Lender or any short term financing? Obviously cash is king, but I'm curious if anyone has had the same amount of success using a Hard Money lender as they would've having purchased with cash.
My partner and I are going out to Huntsville in early May and are trying to decide which lending route to take.
@Eryka Santoyo I have BRRRR'd ( it can be a verb, right?) with both cash and hard money with success. The hard money Refi's are more risky as properties don't always appraise high enough to pay the hard money lender off completely as many banks will only allow you to Refi at 0.75 LTV.
Here lately huntsville appraisers have not done appraisals that capture the appreciation of the market especially when many of the transactions are under 100k or in old neighborhoods as there aren’t any comps. I had to challenge one of my last appraisals.
I've heard that too, that it's hard to get find a place and fit the 75% ARV, so cash is definitely less risky.i'm heading to huntsville too as i want to learn more about the city and hopefully meet the team i'm going to have in that area to help me with my BRRRR. Will PM you , be great to syncup
I'm also looking at investing in Huntsville but don't know anything about the area. I'm planning a trip in June.
I live in Huntsville and am looking to begin investing in the area. Hopefully we will be able to start this summer. Thank you, @Tim White, for pointing out the potential lender issues
Agreed on the appraisal issue. Huntsville has been to volatile lately. And I’ve had a lot of investors loose bc of appraisals. But it depends what area and Comps. Do your homework so you can fight appraisals. But if you go in areas where there aren’t a lot of comps— you might not get what you hoped for. Personally I’ve moved to other markets.