My Lender/Agent Says I need 25% down

[Samuel Liapis]

Hello All,

I am trying to start investing with the BRRRR Strategy. I am looking into private lenders but my Lender/Agent says he's never heard of a lender giving you 100% purchase and rehab. I bought the BRRRR book and it doesn't discuss needing a 25% down payment?

Are their lenders out there that do these types of loans? Lets say I borrow $100k at 12% and 2 points. This 100k could be used for the full purchase price and the full rehab?

Please help me!

[Daniel Haberkost]

Originally posted by @Samuel Liapis:

@Daniel Haberkost

Do you know any that do this? If not I will start searching.

I do but they're local to Colorado, call around, I'm sure you can find one if you call enough people.

On a side note, be very careful leveraging to such an extreme degree. If you have no cash on hand and no partners with cash you're taking substantial risk. You need to have contingency plans and extra capital for when things go wrong.

All too often, new investors with no money are the ones who want to leverage to a high degree when, in actuality, it's generally something you should only do if you have a healthy amount of liquid capital. 

 Real estate investing requires liquid cash.