Seeking Advice: Starting BRRRR Method with a New LLC in Birmingham, AL.

[Account Closed]

Hello Everyone, 

I'm looking for some advice on how to get started with real estate investing using the BRRRR method with $50,000 to start, particularly in Birmingham, AL. Here's my situation:

- Experience Level: I’m a new investor with a moderate (Still learning) understanding of the BRRRR strategy but haven’t executed it yet.
- Business Setup: I'm setting up a new LLC specifically for this venture, which means the LLC will have no prior credit history or track record.
- Investment Location: I plan to invest remotely in Birmingham, AL. I'm drawn to the market due to its affordability and potential for growth, and I have family nearby that can be resourceful.
- Goals: My aim is to successfully purchase, rehab, rent, refinance, and repeat with my initial properties, eventually scaling up to build a portfolio.

Questions
1. LLC Setup and Financing: How do I go about securing financing for a BRRRR project with a new LLC that has no credit history? Are there particular lenders in Birmingham or national lenders that are friendly to this type of situation?

2. Market-Specific Considerations: Are there any specific neighborhoods in Birmingham that you would recommend for a BRRRR strategy? Conversely, are there any areas I should avoid due to high crime rates, low rental demand, or other issues?

4. First Steps: Given my situation, what would be your recommended first steps to ensure I’m setting myself up for success? Any pitfalls to avoid when starting out with the BRRRR method as a remote investor, investing in Birmingham AL?

I appreciate any insights or advice you guys can provide! Looking forward to learning from those who have navigated similar paths.

Thank you!

[Greg Scott]

I think a better question is, "SHOULD I create an LLC?"

Yes, you can get loans to a new LLC. However, they will not be as good as agency loans. They usually have higher interest costs and a balloon payment. Most newbies want the agency loans and just focus on getting great liability coverage through insurance.