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Updated over 3 years ago,
Using Hard Money / OPM for first deal
I am curious if anyone has ever used a private lender. My game-plan would be to BRRRR the property using a hard money loan or OPM and then cash out refi. Pretty basic. I "house hacked" my first home and basically fixed and flipped for a $77,500 GP and about a 55K NP. I also manage seven units currently that I have renovated 70% of the units and brought up to market rent. It is now meeting the 1% rule, and it is cash flowing, but I do not receive any compensation from this deal. (It's complicated). So I do have knowledge on actually doing this work, but I'd like to be able to do this more often.
Long Story short, how do I approach private investors or find them? Also, what about these companies that offer private “deal based” lending. Does anyone have any experience with these?
Thanks!