Fix to Rent
The BRRRR Magic
We love nothing more than seeing our clients find a great deal, buy it, rehab it, rent it, refinance and reload for the next one. The magic of the BRRRR strategy is that you can recycle your down payment for one property to purchase endless properties by repeating the cycle over and over again.
As usual, the devil is in the details. There are some pitfalls in this approach. Some we can’t really help you with – like buying right or choosing the right tile. What we can help you out with is finding the right loan for both the purchase & rehab portion AND the long term refinance.
One of the biggest pain points for investors has been hoping and wishing for the SECOND appraisal to come in at the same price as the original rehab loan value.
This is where the capital recycling/repeating magic happens. What if you had a lender that could do both the rehab AND long-term loans AND could use the same appraisal for both transactions?
Onyx Funding has the perfect solution for you!
Our Loan Parameters
Type | Purchase + Rehab | Permanent / Refinance |
|---|---|---|
Loan Amount | $75,000 Minimum Loan Amount | $150,000 loan amount ($50,000 Minimum property value in a portfolio) |
Primary Focus | Residential investment properties: SFR, 2-4 units, Townhomes, Condos, Manufactured homes | Single asset, portfolio, blanket loans and short-term rentals. SFR, 2-4 units, Townhomes, Condos, Manufactured homes |
Loan Term | 12 months with extension options | 5,7,10 ARM’s and 30 year fixed rate available |
Maximum LTV/LTC | Up to 90% of the purchase price + 100% of the rehab (Up to 75% ARV). | Up to 80% Rate & Term Up to 80% Cash-out |
Recourse | Non-recourse on a case-by-case basis | Non-recourse on a case-by-case basis |
Amortization | Generally interest-only | Generally, 30 years amortization.
Interest-only available |
Interest | Starting at 6.99% | Starting at 3.5% |
FICO | 600+ | 600+ |
Customized Lending
Onyx Funding is a full service commercial real estate firm that provides creative finance solutions.
We specialize in debt and equity funding for commercial real estate properties nationwide with a focus on building long lasting relationships and providing white glove service.
We provide sponsors with capital through our various capital sources.
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