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Updated over 9 years ago,
Mixing loans & lines of credit to maximize leverage
I have a client with the following:
$100k/year income
Excellent credit
$40k liquid cash
Minimal debt, great DTI
Combined equity in properties is ~$100k
He's looking to utilize the BRRRR strategy (Buy, Renovate, Rent, Refinance, Repeat) to build his REI portfolio and keep recycling his cash.
I'm trying to help him figure out the best strategy to leverage his resources so that he can build up his portfolio as quickly as possible. The reason I'm having trouble with this is because I don't know how many loans/lines of credit he'll be able to get once he has several properties, and how they'll affect his ability to get additional loans/LOC.
I would like to know the best way to play this out if anyone has some input.