Hello I’m Reginald from fl. I had a question regarding the Brrrr method . Is it possible to use 3 loans ,and calculate the third loan into the equation. For instance using a credit union loan to obtain the hard money loan then refinancing out of the hard money? Is this feasible? I want to use the Brrrr method ,but do not have enough capital to purchase a property via foreclosure auction.Help!
@Reginald Hyacinthe , generally speaking, no. All lenders want real equity in the deals, and very few lenders will want to be in a second lien position, save HELOC type loans, which still have LTV limits and can only be taken out after you have ownership.
Additionally, at the refi, your new lender will generally not go into a second lien position behind the credit union.
@Reginald Hyacinthe i bought a property cash by taking out 2 sofi personal loans. No leins and i just did a cash out refi once i had a tenant in place. Paid off the sofi loans with the cash out.