Financing BRRRR projects

[Ethan Griffel]

I'd like to get everyone's opinion on a couple options for financing BRRRR projects. I've got my first project completed and stabilized and am now looking at how to scale gradually bigger and do more BRRRR deals. My goal is to get 3 more units done this year. I recently found a private money partner that is willing to allow me access to the funds out of a HELOC on their house. There would be about 600k available to use. My thought is to use that to buy properties in cash (I will find rehabs out of my pocket) and then refinance and pay their HELOC off in ideally 3-4 months. Part of the aggreement in letting me use those funds is I'll be making the interest payments on the draw amount monthly and then at the end when it's paid off the partner will make a percentage back as well. What do people think about that vs using a hard money lender (or other source) for the majority of the purchase and only using the partners HELOC for the down payment. All advice and other ideas welcome!! Thank you!