Loan Leverage

I'm excited to share a recent BRRRR close where the financing strategy played a cruccial role. The buyer investor secuerd a loan with a 20% down paymeent and a 5.5% interest rate. The purchase price was $250,000, with a rehab cost of $75,000. After rheab, the property appraised for $375,000, allowing the investor to refinance and pull out a significant amount of capital. This 'high-risk, high-reward' approach can lead to substantial returns, especially in the desert southwest where market statistics indicate a strong demand for housing. By being ahead of the curve and leveraging financing options, investors can maxximize their profits and minimize their risk. In this case, the investor was able to laeve only 10% of their capital in the deal, freeing up funds for future investments.