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.

Every lender is different, and even more so when comparing a lender for your personal residence versus an investment property. Let’s break down the documents and information that you need to have readily available to submit, whether through Blue Bay Capital, or any other lender you choose to work with. At the end of the day having these documents readily available, complete and legible will shave literally days if not weeks from your timeline to close.

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!

During the next couple of slides, I will go over how this saying is true, and depending on which side you play on, you will benefit from. In this first slide, we have a lender with $150K and a borrower with $150K. The borrower wants to use leverage, ie the lender’s capital to help him buy this property. The As-Is value is $210K, so the borrower does not have enough, but he does have 30% to put down towards the loan. The lender is willing to give a $147K loan @8% annually, amortized over 15 yrs. The PI payment is $1,405 per month, the borrower will have to pay for taxes and insurance themself. The borrower has to put down $63K but still has $87K remaining.

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 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.