BRRRR Method - Refinance

4 Replies

Does anyone know of lenders that will lend 75% LTV and not 75% purchase price? My first investment was kind of an accidental BRRRR and I refinanced with Chase, but I had already owned the property for a year by the time I refinance. I'm in search of a lender that will lend 75% LTV after a rehab is complete. Any tips?

@Ben Colabella you can get a 70% LTV refi (SFH) or 75% LTV refi (2-4) after 6 months of ownership going conventional (the cheapest money to borrow). Alternatively, you can go with a portfolio lender and get a refi with the same LTV % as conventional, immediately after fixing up the property and placing a tenant. A portfolio loan is a more expensive rate with less favorable terms (ie shorter term with balloon payment).

For a really creative solution and after drinking plenty of coffee, read this thread:

https://www.biggerpockets.com/forums/48/topics/460294-how-to-cash-out-1-4-unit-property

@Ben Colabella take what @Brian Gerlach said and fix a few things. 2-4 units will be 70% and SFR will be 75% LTV after 6 months for convetional financing.

What you are looking for is going to be portfolio lending and there are some out there that will go up to 80% with 0-30 days if seasoning. A mortgage broker would mainly have access to these and can offer them with 30 year fixed terms or ARMs products over 30 years. Plenty of them that are not balloons.

You are welcome to PM me for some more specifc information based on your situation.