All Forum Posts by: Phil Rizzo

@Tchaka Owen Banks might be a dime a dozen but a broker who understands the brrrr strategy? Dare I say priceless? LOL

@Phil Rizzo I think your banker is confused.  That would make him the 5123425535th banker to have someone from BP approach them with a brrrr scenario and have no idea what to do.

In general, you should not be having to come to the closing table with anything (minus the cost of an appraisal) on the cash out refinance side.  There is no 20% down.  You're getting a new loan for x % of the property's value which pays off the original liens and has you walk away with the difference in cash.

If you're getting a loan at 70% LTV, that means you have 30% equity (down) already. The bank rep perhaps misspoke.

6 months seasoning is the most common but some wholesale commercial and portfolio lenders have found a way to offer 90 day seasoning (yes, off LTV/ARV) and still re sell them on the secondary market. If time is of the essence it's a huge competitive advantage.

@Phil Rizzo

Unless your banker has a different requirement from those used by BRRRR investors, I think you're ok.

If you can find and rehab a property for $100k that will appraise for $150k, you'll have a "home run" of a BRRRR. That's hard to find.

BRRRR is to access all or part of that $50k gain, then "repeat".

Once it appraises for $150k, the banks will loan you 75% or 80% of value (LTV).....so, your banker is telling you they'll loan up to $120k loan (80%LTV). You will have 30% equity or down payment minimum in the property. In the BRRRR method, this is ideally part of the "gain" you've made....but it is "equity" to satisfy the bank, nonetheless. You shouldn't be asked to put in another/new $30,000 too.

@Phil Rizzo

Unless your banker has a different requirement from those used by BRRRR investors, I think you're ok.

If you can find and rehab a property for $100k that will appraise for $150k, you'll have a "home run" of a BRRRR. That's hard to find.

BRRRR is to access all or part of that $50k gain, then "repeat".

Once it appraises for $150k, the banks will loan you 75% or 80% of value (LTV).....so, your banker is telling you they'll loan up to $120k loan (80%LTV). You will have 30% equity or down payment minimum in the property. In the BRRRR method, this is ideally part of the "gain" you've made....but it is "equity" to satisfy the bank, nonetheless. You shouldn't be asked to put in another/new $30,000 too.