Initial Cash Borrowing

[Noah Kellar]

Hello, all.

My name is Noah Kellar & I am a 22 year-old in the research stage of rental property investing. I came across this website through Brandon Turner's book, "Rental Property Investing" (great book). I am looking for some insight on private money lending. First, I know a few people conducting the BRRRR method & I believe that is the path I will take. It only makes sense. However, my thoughts are circling around the financing side of things (obviously, as it would be my first experience). I have a family member who I have maintained a trusting relationship with (lent $ before) & I plan to borrow from them to get started. I have a full-time job & have always been a high achiever; this family member is not just handing me $.

My questions are, how much would I need to borrow to get started? As they wouldn’t charge me interest, shall I begin paying them back immediately (in monthly payments) or do so in full after refinancing through the bank? I know most investors refinance 6-months to a year after they’ve rehabbed, forced appreciation, & established cash flow through tenants, but I want to do this thing right. I would be delighted to grab some feedback!

Thanks a ton,

Noah Kellar