Just a Beginner looking for some advice

[Nikoloz Sartania]

Hello to everyone!

Another first timer here  in this forum and Real Estate field. Just trying to get started  but as always happens with the begging have a few questions and concerns This might be asked here many time but every one situation is different just looking for advice. 
I just close on 2 family property in Central New Jersey with FHA but have no cash flow as the Tanant's already pay low rent till the lease expires but anticipate to get it lit up and cash flowing.
One unit is renting and another where I stay with roommate.

I recently found and LLC and getting started moving ahead with Brrrr .

I have found another multi Family property cash only i the nearby and good for Brrrr.
I have enough cash for Down payment and renovation but not for purchase property.

I have income from other business also.

Do I have first find cash out lender to get pre approved  and than move on?

Or I better get first pre approved for hard money to buy the property, renovate rent and than apply for long term financing?

Thanks  

[Kevin Manafi]

Hi @Nikoloz Sartania,

Congrats on closing the Central Jersey two-fam recently. 

If you're planning to do a BRRRR, you'll first want to find the lender you're going to use for the actual purchase, then start thinking about who you might use for the refinance when the renovation is done. It's definitely a good idea to get started on the long-term aspect now so at least you know you will be qualified down the line to take out the other loan and what types of LTV's, etc. the lenders will give you. Also--very important--is to talk with your potential lenders (both for purchase and for refi) about what their seasoning period requirement is. The seasoning period is a requirement that some lenders/mortgages have that you must retain the mortgage for a period of X months before refinancing--this is most commonly 3-6 months at the minimum, but can vary from lender to lender. This is extremely important as you'll want to know your timeline in order to build the BRRRR budget.

[Andrew Postell]

@Nikoloz Sartania some hard money lenders will want you to get prequalified with your REFINANCE step lender at the same time.  That way they know that you can get out of their loan.  But even if they don't require it - do it anyway.  It's free to do and having your credit checked by a few mortgage companies in a 2 week period of time won't affect your credit rating.  There's all sorts of reasons to get prequalified with BOTH lenders.  Hope all of that makes sense.

[Ryan Deasy]

@Nikoloz Sartania

great questions. best to run your deal by a hard money lender so you can see if it/you is financeable before you proceed too far.