How Much Savings Should You Have Before Starting To BRRRR

[Trevor Schuler]

Hey BPers!! I'm currently running a new wholesaling business that is doing just fine. I'm trying to come up with a strategy plan to real estate investing. I was just wondering on how much money should I save before starting to BRRRR properties. Should I jump in as quickly as possible or should I wait. Can anyone give me there thoughts on the pros and cons of waiting until I have more savings to then reinvest in to some BRRRR properties. In my mind I would say that it would be best to wait until I have more capital and then begin the BRRRR process, but I don't have any solid evidence other then gut instinct. Thoughts and suggestion please my friends.

[Allan Smith]

The amount of cash you need depends on the deal that you find. If you buy it traditionally (down payment with bank, or buy it cash and re-fi), you will need funds to close, perhaps funds to float payments to contractors (with or without a construction loan), and you'll need cash reserves for at least 3 months (6 is best) to cover all holding costs associated with the property.

If you want to go the creative route, that opens up a whole realm of options. If you have an equity partner, you don't really need any money...