Navigating through our first BRRRR

[Kate Schaefer]

Hey Everyone - I hope all is well. 

My partner and I recently completed some light rehab on a duplex that we are holding in Philadelphia. For the first deal we did a FHA but came out of pocket for all rehab. We found that's not super scalable and are now looking to get into our first BRRRR (without coming out of pocket with the funds).

I was hoping someone could offer some advise or recommendations on the lending aspect. This is our first official flip so many hard money lender don't have great terms or won't want to lend to us all together since we only have rental experience. Would be great if someone could give an idea of what theyve done with a private money lender or local hard money lender they had success with when they started out. Would be awesome to get lender names in philly/south jersey area to connect with if at all possible.

Thanks everyone!

[Michael Kinsella]

This is our first official flip so many hard money lender don't have great terms or won't want to lend to us all together since we only have rental experience.

You'll need to turn over more stones. Many HMLs shy away from borrowers without comparable experience, but there are some that are willing to lend to first-timers.

Would be great if someone could give an idea of what theyve done with a private money lender or local hard money lender they had success with when they started out.

Coming from the lender's perspective, if you don't plan on partnering with someone who has more experience, then again you can just speak with more lenders until you find one who doesn't have the comparable experience requirement. 

Would be awesome to get lender names in philly/south jersey area to connect with if at all possible.

Below are three reasonable ways to source HMLs in your area;

1. Network --> Hard Money Lenders tab on BiggerPockets

2. Speak with local investors and ask for referrals.

3. Attend local REIA meetings and network with HML reps as well as ask for referrals from local investors.