Newbie Question on BRRRR

[Trevor J Dammon]

Hi All,

Newbie here. I've been creating some spreadsheet, analyzing deals, and researching properties as much as I can. I'm now starting to look into the BRRRR method and have a couple questions.

First Question: Why do I need to purchase the property with cash or hard money. A lot of sources claim that I need to buy the property either with cash, a HELOC, or with hard money so that I can refinance after the rehab. Why can't I get a standard loan to buy the property and then refinance after the rehab?

Second Question: How are you finding distressed properties? Currently I use the MLS, which I know isn't the best way to find home runs. It seems like most properties there are already in pretty good shape. I could contact realtors but realistically I am not looking to buy for another year at least. I've heard of driving for dollars or investors mailing out letters but again I think I am a little new to the game to do that. I'm not sure I could have a fully competent conversation if I did get a response from a letter.