Private Money for BRRRR

[Aaron Port]

Trying to learn all I can on the BRRRR method. Can someone explain to me the process of using private money from investors in the BRRRR method and how I then pay them back and then still have enough money to move on to the next deal just off of the refi?

It will be my first deal. And I know some say not to use this method on the first deal, but I know it works and it’s repeatable if you have the systems in place so I would like to use it.

Thanks for the knowledge!

[Kenneth Garrett]

@Aaron Port

When you refinance through the BRRRR method. You are paying your investors principle back plus interest back. See example below

• Purchase 100,000
• Rehab 20,000
• Total private funding 120,000
• Appraisal 180,000
• Rent amount 1500
• Private lender Interest 10% at 6 months = 6,000
• Refinance at 75% of LTV = 135,000
• Total private lender amount 126,000
• Cash out refi 9,000

This is very simple numbers.  You have no money stuck in and put money in your pocket from the closing.