Taking out equity to finance other properties

[Aseebulla Niazi]

Long story short, I have been buying multifamily units through an LLC. for the first triplex, we had to put down 30% due to my lack of experience and first-time investor etc. Would it be wise to take equity out of this unit and use to buy other units?

[Brandon Sturgill]

@Aseebulla Niazi It's all relative...I'm personally not a fan of BRRRR for beginning investors...there are just too many pitfalls to be aware of...there is a right way to do it, but your strategy has to be tight upon acquisition. Since you are holding title in LLC, you won't be able to use a conventional/conforming lender to re-fi...you need to hold title in your name.

The alternative is to seek private or other financing.

My opinion is that how successful you are in this industry has nothing to do with how many units you own...the power of free and clear is really amazing when you consider it...