Is the best way to fund a BRRRR Hard money?

[Jeremiah Belin]

I'm having trouble figuring out is Hard Money the best way to start a BRRRR

[Perry Farella]

Another option for you may be a conventional loan called HomeStyle. It can be for 30 years, so lower payment versus a Hard Money Lender. Advantage is the house will be appraised for its ARV, not what you pay for it today. The down payment is 15% based on sum of purchase price, say 40,000 + rehab dollars, say 40,000 so total is 80,000 times 15% or 12,000 down and you get 40k to rehab, one loan, one payment, fixed for 30 years. You can sell any time and pay off the loan and do the next one, no pre-payment penalty. Rates are based on your credit score so its a personal loan in your name, not the name of your LLC. Advantage also is the future rent will be projected by an Appraiser and you will get 75% of the future rent as extra income to qualify for the loan automatically. So qualifying can be easier this way even though you may plan to sell and never rent, the lender cant forecast that. I have written about it and do it for my own clients if you have questions.