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Updated over 4 years ago,
Is it possible to begin my BRRR process with 20k cash?
Trying to figure out my entry point into real estate. Starting with such a low amount I would love to hear if it's possible to BRRR with 20k cash? Maybe find a private lender and put up my cash as a down payment? Or what other options are out there to BRRR? Maybe even tell personal story of how you might have accomplished your BRRR with a lower amount of cash to start off with? I know I could always house hack with an FHA loan but really love the power of BRRR.
@Vernon Johnson Time to get creative. Look at different ways of financing. You can seek out seller financing with a low down payment on a home that can use some work. Make sure the math behind everything makes sense first. And then use the rest of that 20k to rehab. Refinance and repeat.
@Vernon Johnson don't mean to burst your bubble and I don't want to be a Debbie Downer but *if you've never done a BRRRR deal* why would a private lender risk their capital and why would you risk your reputation on your first deal? My advice: find someone to learn from so you can get a little experience under your belt before risking your capital or the capital of others. Network, go to your local REIA meeting, ask everyone you know if they know an investor they can introduce you to, etc. You might be able to use a HML but it's very expensive money to borrow and risky on your first deal, the first deal doesn't always go well. The upside of using an HML is another set of eyes looking at your deal, ie they won't loan on something unless it's profitable.