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Updated almost 8 years ago on . Most recent reply

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Stephen Lock
  • Waxahachie, TX
3
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4
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BRRRR - Okay to use OPM or Wait?

Stephen Lock
  • Waxahachie, TX
Posted

Hey all! I have been doing a lot of reading on the site concerning the BRRRR method. Considering where I am in my life (early 30's, wife, child and house), this is the strategy that I have chosen to follow in my adventures in REI. That being said, is it a usable strategy if I were to start my first property using OPM or is it better to use my own money? I have a significant amount of equity in my current home thanks to a hot market here in DFW, and I also have a little bit (less than $10k) in savings at the moment. I really want to get my foot in the door before the DFW market starts cooling down, as well as meet my goal of two properties by 2018. Thanks for all you guys do on this site and looking forward to any help available.

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4
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Stephen Lock
  • Waxahachie, TX
3
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4
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Stephen Lock
  • Waxahachie, TX
Replied

Interesting perspectives all around.  My biggest question about using OPM is the process for paying back the original lender:

For instance, if I use a PML to fully fund the acquisition and rehab, then the project finishes and I acquire a tenant.  Then I do the R/T refi, does the bank taking on the loan pay the PML directly or do they cut me a check to give to the PML?  

Just trying to get the whole process in my head.

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