Updated about 2 years ago on . Most recent reply
Delayed Financing with Rehab cost included (BRRR method)
I listened to BiggerPockets Podcast #406. In the podcast, the guest mentioned Delayed Financing with Rehab cost included. She briefly mentioned about HUD-1 statement recorded. I search all over the internet but it all talked about only getting back what we paid for the property (and not Rehab cost). Can someone knows how I can execute BRRR strategy with delayed financing to get Rehab cost out at financing? Thanks in advance for your help!
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Rental Property Investor
- Boulder, CO
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Rental Property Investor
- Boulder, CO
@Ryan Aung The first step is finding a lender that will allow you to do delayed financing and put the construction + contingency on the HUD. I've done this with HML that will then convert the loan to a commercial loan in the end. Once you close on the property, the funds will stay in escrow for you to draw upon as you complete construction.