Q&A Sunday: Buy, Refurbish, Refinance, Rent With No Income

I got a great question in my latest Q&A Sunday about how to do a Buy, Refurbish, Refinance, Rent (BRRR) deal without proof of income. A lot of people out there are in the same position, i.e. they have some money put aside but no or low income. Therefore, I thought I should cover the question in a blog post so that people in the same position could get access to the information.

If you have a burning property question yourself, why not post it in the comments section of my latest video? Who knows? It might even end up featured on the blog!

The Drone Operator said…

I have some cash on the way from a work injury claim and I'm hoping to employ the buy, refurbish, refinance strategy. However, how likely would it be to get an initial mortgage and then a remortgage while being a student and not being employed right now?

My reply…

Great question, The Drone Operator. First off, you are clearly very smart because you're thinking about the long haul. So when you get a buy refurbish, refinance deal, probably initially financing is not gonna be an issue for you. Initially, you are going to be buying it with the money that you've got from the work injury and you're going to top up the difference with maybe a bridging loan. That's not going to be an issue; the hard bit is going to be the refinance at the end.

If you're a student and you've got no income, that's going to be the challenging part. So what I would do if I were you is I would speak to a mortgage advisor and tell them your situation. Find out what kind of buy-to-let mortgage you could qualify for.

Let's say you would qualify for a small buy to let mortgage, anything less than 150 grand. That’s just an example, I don't know if you would. However, bear in mind as well mortgage lenders, when they're giving you money for a buy-to-let, they care less about your income than they do about the rentability of the house. You're not going to be able to get a mortgage on an HMO probably or on something big, especially if it's a big HMO commercial property. However, if it's a small little buy-to-let you might.

So I would say find out first what you can get a mortgage on and then buy the rundown version using cash with your injury claim money and bridging finance. Then when you push the value up, get the refinance but make sure you go in knowing that you have a plan.

I hope that makes sense. If it doesn't, ask another question or maybe consider coming down to a training program that I am running called the Property Millionaire Intensive.

Sounds a little bit of an interesting title, that's because if you want to be a property millionaire ultimately the fastest way to do that is fast pound, slow pound. You can have a trading business such as deal sourcing or rent to rent getting cash, but then it's all about that buy, refurbish, refinance, rent baby! That's what we're gonna be teaching, so The Drone Operator or anybody else, I have got a limited number of free tickets. I know a few of the venues are sold out, but there are still some tickets available here. If you come down, I'll do my best to help you with any questions at the programme.

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