While they are based in Florida, he said, for some investors, they help them look at other markets for fix-and-flip loans. Some of those clients work to build a portfolio of rental properties using the BRRRR (buy, rehab, rent, refinance, and repeat) method.
“We work with clients where sometimes they want to hold a property, they do the BRRRR method,” he said. “It doesn’t work as well in Florida, so we’re looking at some other markets that it works in, like Ohio. Ohio has a really good market for fix-and-flip.
“You can buy at the right level, and then you can take it, and when you go to exit on the refi, you can rent that out for the mortgage. So they always cash flow.”
Helping borrowers improve qualifications
He also assists borrowers who may not be eligible for a conventional loan for a particular purchase.
“I like to solve issues for people who do business purpose stuff, in terms of the self-employed,” Hufstetler said. “They take and write everything off on taxes. They’re going to go to a big lender, like U.S. Bank or Chase, and they’re going to go, ‘I see here you made no money.’ The borrower says they made $100,000, but they wrote $90,000 off.”