Hey everyone!

So I've talked to some lenders in regards to the BRRRR strategy. I've done this with an 8 unit over the last 12 months and once this deal is wrapped up we are really wanting to scale our business.

The bank I’ve done the 8 unit deal is wanting me to take it “slow” and let the new loan season before I take on more debt. Another bank I’ve spoke to will only do one loan at a time- so one deal at a time. Which could hinder my ability to scale. I’d like to go from 8 to 60 units by the end of 2020.

I'll have an $82,000 HELOC to utilize as my down payment, but I want to recycle this money and not get it stuck in a deal.

Another bank I spoke to said that banks aren’t doing cash out Refis in our area, and that big banks are buying up a lot of the smaller banks and calling “due” anyone that has these portfolio loans on 5 year balloons. Leaving investors in bad situations. Luckily, I don’t have any balloon notes at this time.

Are you guys working with local lenders for the cash out portion, seasoning periods and are you utilizing your own cash for the renovation or using hard money lenders?