NEW to the BRRRR method! Where to start with private money or hard money lenders?

[Matthew (Mateo) McDaniel]

I'm not sure where to start with private money or hard money lending when it comes to covering rehab costs on a rental property that we already own. To add more context, we have owned this particular property free clear for a few years now and want to make this property our first BRRRR, however we've never worked with a private or hard money lender before. The house is already in good living condition with great tenants currently in it. I initially paid out of pocket for most of the interior updates / rehab costs when the family moved in, but now it could use new roof shingles (which we've got estimates on) and some minor updates in the kitchen and garage. We also considered converting the garage into a 3rd bedroom to add value through live-able square footage but aren't sure how far we should go with it before we start looking into a cash out Refinance. We got a great deal on this property, it's positively cashed flowed over the past few years, we would actually profit on a refinance, and it'll carry an INF% return once refinanced according to the BRRRR calculator.

Any info, insight, or personal experiences in regard to hard money lenders and/or rehabbing before refinance would be greatly appreciated. Sorry if I went off on a spiral there. Thank you in advance BP Family!

[River Sava]

Hey Mateo! 

This is a common question and it can be conufusing with different REI lingo (private money, hard money, etc). Check out this BP article on BRRRRs and how DSCRs come into play for the refi portion. I hope it will clear up some gray areas!

 https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...