All Forum Posts by: Alex Hunt

The naming of it is very misleading, as yes a good portion of our borrowers get fix & flip loans to lower the downpayment and include the renovation budget. To then refinance into a 30year note, after the renovation is completed. As that is the full "Brrrr method"

Agreed would not want to increase the mortgage of the 1st property so exclude that, it seems cheaper but what is the deal with the $60k in closing cost? 12.5% closing cost does not make sense and would make a 30year fixed cheaper. Based on $380k loan amount (80%LTV) your estimated P+I payment for a 30year fixed is around $2,010

If you would like to see more of full breakdown or to ask more questions send me a message or inquire on Brrrr loans BP page

Even as a lender this offer, makes me scratch my head. What I would recommend, if you are looking to use your equity in this location for renovations or to purchase another location. Would be to do a cashout refinance for 75% of the value to buyout you exisiting commerical loan and net in cash the rest at closing. So at $175k market value you would be looking at $131,250, paying off the balance and netting the nest. Hope this was helpful, for more information or questions please message me or inquire on the Brrrr Loans BP page.

From my perspective as a lender, the lower rate option of the the HELOC is not a bad option. What I would also recommend looking into would be a fix and flip program- if you wanted the renovation budget to be included in the loan, with 80-90% of the purchase price depending on experience.

Other option to look at would be using the first investment property for a cashout refinance if there's equity and use that as the downpayment a 30 year fixed with 20% down to get the next location

Hi Jill,

In my professional opinion if the location is being rented out and cash flowing or atleast covering cost. Why sell it? You can work with a lender such as Brrrr Loans, the company I work with to get a cashout refinance for up to 75% of the value to use to purchase another location. Hope this was helpful, for more information message me or inquire on Brrrr Loans Bigger pockets page. 

I can answer from a DSCR lender standpoint.

- Looking at only the property in question not the business entity, unless it is a mixed use property which it does not sound like it is. 

- When calculating cash-flow, I'm taking everything into account. That is, not just holding costs (like PITI and utilities), but funds I'm putting aside for repairs, capital expenditures, vacancies, and management (even though I'll be self-managing). Is the lender looking at "expenses" the same way, or are they just looking at actual monthly outflow of cash? As an investor I agree this a good way to think about it. As a lender though we mainly consider taxes, insurance, management or HOA and the P+I payment against the rent or market rent.

Hope this was helpful, If you have further questions please message me or inquire on Brrr Loans Bigger Pockets page.

There is a very easy solution and I or some else on the Brrrr Loans team can have you quotes for specific location's within a few hours. No doc 30 year lenders meaning, no employment verification or tax returns required. Only thing we need to see is liquidity reserve/ 6 months of the PITIA payment. 

In my professional opinion the best option here would be to either use the cash as downpayment for a 30 year fixed purchase, or to buy in cash with a delayed purchase to receive 75% of that cash back to purchase the next.  Quite frankly with $1.5 million liquid you can easily be approved to purchase upwards of $7 million in real estate. Hope this was helpful, for more information please message me or inquire on Brrrr Loans Bigger Pockets page.

You are in a great situation if you can pair with the right no doc 30 year lender, like the company I work for Brrrr Loans. We do not require tax returns, employment verification or other things that a conventional mortgage/ bank would require. Best option in my professional opinion would be to do a delayed purchase mortgage for the duplex to get back 75% of the cash you put in. A simple cashout refinance for the townhouse for 75% LTV as well, with both on a variety of 30year options. Please message me for more information or inquire on Brrrr Loans bigger pockets page, hope this was helpful.