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Updated over 4 years ago,

User Stats

12
Posts
3
Votes
Vernon Johnson
  • Rental Property Investor
  • Dallas, TX
3
Votes |
12
Posts

Is it possible to begin my BRRR process with 20k cash?

Vernon Johnson
  • Rental Property Investor
  • Dallas, TX
Posted

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.

User Stats

39
Posts
13
Votes
Dylan Bowman
  • Real Estate Agent
  • Visalia, CA
13
Votes |
39
Posts
Dylan Bowman
  • Real Estate Agent
  • Visalia, CA
Replied

@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.

User Stats

1,822
Posts
1,236
Votes
Brian G.
  • Rental Property Investor
  • Los Angeles, CA
1,236
Votes |
1,822
Posts
Brian G.
  • Rental Property Investor
  • Los Angeles, CA
Replied

@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.

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