I am looking for a bank or credit union (preferably a local) that will let me BRRRR my investment properties in Luzerne County Pennsylvania. I have several properties in the area however my current bank will only give me 75% of the purchase price of the home which kind of defeats the point of BRRRR'ing the property. I need a bank that will give me 75% of the ARV so I can pull my cash out and find another property. Thanks in advance.
When you BRRRR, most folks need to work with non-traditional lenders for the buying and rehabbing part. You could, for example, look for hard money or private money. You may need to leverage your other assets to get the money for that part. Traditional lenders typically enter the picture at the refinance stage.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
Chris K, thank you. I am looking to pay cash for my deals, do the rehab and then get a mortgage. My current bank is a small local bank but they will only go off the sale price that I paid which won't account for any forced appreciation that I put into the property during the rehab.
Like Chris said you would have to go hard money or wait 6 months to cashout refi.
@Robert Young what kind of terms are you looking for?