BRRRR No Money Down
It is possible to build a portfolio of 10 or more rental properties in three to five years with no money down. You can do this with the BRRRR real estate investment strategy. FBC Funding offers two options for clients with very good credit to qualify for BRRRR No Money Down.
BRRRR – No Money Down – What is it?
BRRRR is a real estate investment strategy for real estate investors looking to build a portfolio of residential investment properties for long term passive income and equity growth. As a real estate investment strategy borrowers need to understand this is an investment. There are costs. With every investment there are costs. The BRRRR and our No Money Down options help investors mitigate cash out of pocket and costs to provide a great return. The BRRRR method is to Buy a distressed property, Rehab the property, Rent the property, Refinance the property for cash out to Repeat the process. When the property is evaluated, renovated and rented correctly, a real estate investor can successfully buy three to four properties a year with this strategy. In three to five years have a real estate portfolio of ten properties or more.
BRRRR – No Money Down – Benefits
The benefits of the BRRRR method are numerous and here are a few.
- Build portfolio quickly
- Build portfolio with little or no money down
- Passive Income
- Equity growth
BRRRR – No Money Down – Requirements
The requirements for BRRRR No Money Down are based on the loan program and FBC Funding offers two options. Option One is the full doc income and asset verification program. Option two is lite doc with no income verification and no asset seasoning. Regardless of which program the real estate investor needs good credit. For option two the investor needs great credit because we are not verifying income.
BRRRR – No Money Down Option One
This is one loan with interest rate being 12.5% to 13.5% based on experience.. (lower rates for clients who have successfully completed this program).
- Credit Score: at least 660 with higher loan amounts for higher credit score and more experience
- Income Verification: 2 year income verification (1 year for 700+ credit score and 3+ completed projects)
- Asset Verification: 15% of the project plus closing costs and 3 months of payments
- Experience: 0 – 2 completed projects in the last 3 years 65% ARV
- Experience: 3+ completed projects in the last 3 years is 70% ARV with 700 credit score
- Partners: Full Verification for all partners.
BRRRR – No Money Down Option Two
This will be a base loan for the purchase rehab funding and gap funding signature financing for the down payment. The signature funding is based on credit profile.
- Credit Score: 700+ with credit profile showing experience managing higher credit limits.
- Income Verification: NA
- Asset Verification: No Seasoning, just proof of funds to close
- Experience: 0-4 completed transactions in the last 3 years equal 75% to 80% base loan. Lower base loan means higher gap funding required for 100% funding.
- Experience: 5+ completed loans in the last 5 years equal 85% to 90% base loan. Higher base loan means lower base loan required for 100% funding.
- Closing costs can be funded with Gap Funding.
BRRRR – No Money Down – DSCR Cash Out Refinance
Once the property has been rehabbed and rented out under the BRRRR No Money Down investment strategy the real estate investor will refinance the property getting cash out up to 80% of the new value with no ownership seasoning. The minimum credit score is 680 with no income verification, but the higher loan to values require higher credit scores 720 or more.
FBC Funding has help many investors successfully use the BRRRR Investment Strategy.
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