Financing for BRRRR

[Jeremy Bohm]

Hi. I’m Jeremy. I am from the St. Louis area and currently in the education phase of the real estate rookie process. I am getting into single family homes to start with the long term goal of holding storage units. For my first deal I am just like most are nervous about financing. What are some of the most creative ways to successfully finance deals and does anyone have any finance nightmare stories that we can all learn from?

[Zach Westerfield]

I have used private money, hard money, and a multitude of banks. While working with banks can be a headache, financing in general should not be scary. "Leverage" is a great part of this business. Take some time to learn key terms and understand the basic ratios such as debt-to-income (DTI), Loan to Value (LTV) etc.

some of the best products i have right now are renovation loans from local banks. i am getting up to 90% of the project cost (Purchas + rehab) at 6% interest for 12 months interest only. This beats the private money terms i have used in the past.