Which loan product to use for BRRRR?

[Elvin Tolentino]

Hello everyone,

I just sold my primary residence and will be using some of the gains to invest in another single family property. I plan on using about 20K for a down payment (maybe slightly more). My credit is decent. The major potential set back is my student loan debt (about 40K) which would increase as I advance through grad school. I am working to get pre approved for a conventional loan to purchase and potentially fund the rehab/holding costs but that student debt is hindering me.

Im working With a very knowledgeable potential lender at this time. I just wanted to know what loans people have used to acquire properties at low and no money down. The thing with conventional loans is that according to my lender I cannot put the property in an LLC. Sorry for the long post. All advice is appreciated.

[Marcus Auerbach]

Hard money is sometimes a good option for the front end if you don't have cash or family money to do so. On the back end we use commercial 7 year balloons, but you should use 30 year conventional products as long as you can (you are limited to 4 and then 6 more with tighter standards, so 10 total per SSN - in case your ar married you could 2x).