In this episode of Get Real Wealthy Season 2, Quentin talks about the purchase plus improvement mortgage.
Quentin says that this is a mortgage that you would use for the buy, fix refinance, and rent strategy or the BRRR strategy. He has highlighted this strategy in his book The Ultimate Wealth Strategy. This way, you're able to get a mortgage and get the funds for the renovation from the same bank. There are lots of banks that do this, or talk to your mobile mortgage specialist to see the options that are available for you. He says that there are a few things that you need to keep in mind. First, you need to define what the renovations are and get quotes in writing from contractors. Number two, you close on the property, and usually, you try to get the work done within like six months.
Once you close on the property, and you've completed the renovations, you're going to inform the lender that you have completed the renovations, the lender may send in somebody to see that you've done the renovations, and then they are going to give you that whole back of that additional money that they're holding back for the renovations to cover your cost on the renovation. As an investor, it's a great tool to add to your toolbox.
In conclusion, he says that there are different ways to look at it, depending on how efficient you can be, but the purchase plus improvement mortgage is a great mortgage for doing the BRRR strategy.