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Updated about 5 years ago,
Financing Success with BRRRR
Hello BP Universe!
Recently I've been learning about the BRRRR strategy, and how to best execute. I've been reading David Greene's BRRRR book... I would highly recommend!
What I've been curious about the most as of late is how to find the best lending structure for this strategy. For instance, I know that since a distressed property isn't a great form of collateral, it is almost impossible to obtain a conventional loan.
That being said, I know that many investors turn to either hard money, private financing, or family members to finance the initial home purchase and often the rehab. However, there are limitations to each of these, so - are there other options out there that I'm overlooking? And has anyone applied them to a deal? I am absolutely open to creativity!
For more background on my question, I'm looking to finance roughly 50k on a distressed property, and am targeting 25k for a rehab (max) and would like to refinance after a seasoning period (hopefully no more than 6 mos.). Depending on the financing, I am willing to pay the rehab costs myself to potentially save some money.
Thank you in advance for your time and insight!