BRRRR buying cash to start

[Ben Di]

Hi there

I've heard it a few times now and still not too sure the big difference with buying the initial BRRRR property with your own cash? If you are able to work out the numbers that allow you to put 5-20% downpayment and get the dp+reno costs mostly back out on the refi, why wait to save up enough to buy the whole thing from your personal cash? I'm guessing there's a big benefit to it that I'm not really seeing.

Thanks!

Ben

[Joseph Firmin]

It isn't a cash-only strategy. You can BRRRR with a loan (conventional,seller financed or hard money)... there is no hard and fast rule of cash only. Cash just helps the velocity of your money to move more quickly. But, truly, you can move just as quickly with hard money or conventional and then just use a portfolio lender that doesn't have a long seasoning period to do the refinance. Happy investing!