B.R.R.R.R. Strategy - Florida DSCR Loans
Many times if not very often, the investor finds out that they cannot refinance ALL of their capital out, and thus their plan to go and buy a new rental property is now stunted. How does this happen, and why? In this video presentation, I explain the most common scenario and why this happens to real estate investors all over.
Is B.R.R.R.R. Dead?
In real estate investing the BRRRR method or Buy, Renovate, Rent, Refinance, Repeat, is extremely popular. There are certain requirements for this strategy to make sense, and those requirements are quickly changing. Ensuring you have a deal that meets certain numbers, and identifying a Florida Hard Money lender that understands what you are looking for and how to help you structure your capital stack is imperative to being successful in implementing the BRRRR strategy. Here are some tips I provide for BRRRR interested investors so that you can be successful with your next project!
GAP Funding
The term GAP Funding is often associated with high returns, quick turnaround, and fast profits for the lender. The issue is that most new lenders are not aware of what exactly GAP Funding is, and if they are speaking with their borrowers to educate them, then they are allowing the fox into the hen house and taking the fox’s advice on how to secure the hen house against… foxes. In this video I advocate against newer private lenders participating in this type of loan, as well I offer some measures that they can take to shore up their risk and shift more of it to the borrower.
How to Spot a Fake Lender
How can a real estate investor like yourself spot a fake lender? Being able to identify which “lenders” are scammers and fakes can be difficult for newer investors. Believe me, when I say that the longer you are in the business you will be able to quickly pick them out of a crowd. So this is definitely for newer investors, yet still sometimes, even for seasoned investors, who may be stuck in a pinch, when one of these scammy posts comes around, it may be enticing to try and see if their terms are legitimate, don’t! In the video above I go through several ways that you can tell a fake lender, or a scam apart from a real offer of business, especially on social media. Below are the highlights and what you could do to quickly protect yourself and be able to verify if the lender is who they say they are.