The Buy in BRRRR Method
Hello BP,
I'm not 100% on the B in BRRRR.
Buying a property in distress (best deal) that may not qualify for a bank loan, requires you too pay cash.
Perks: Ideal in a competitive market closing faster gives you the advantage.
David Green talks about when getting pre approved, checking rates etc. to find out the banks LTV (loan to value) shooting for a goal of 75% give or take. Allowing you room to recoup your initial investment.
So when doing a BRRRR investment. Can you use a bank loan to buy and then refinance after rehab? Or are you going to the bank to research your refinance before you pay cash?
I guess between going to the bank for pre approval, loan information, and interest rates and buying/financing after the rehab has got me a little confused.
All said and done.
Can you use a bank to do the Buy in BRRRR and still come out on top? Or is cash the only way to go.