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Updated about 3 years ago,
Finding Private Lender For Rehab (And Future Deals)
I am currently in the process of doing my fifth BRRRR and have met an obstacle. I was able to save up enough to do this on my own and do the BRRRR process for my first few rental properties. I was able to buy the property cash, but have run out of liquid capital to fund the rehab. My options are to wait until I am able to refinance my fourth property in order to have the funds to do the rehab for property five (which won't be until early next year, has anyone done this option before?) or find a private lender to fund the rehab of this project. I have used hard money lending on one of my properties, but prefer not to because of the upfront fees that are needed. I am more comfortable paying interest only monthly or a lump sum at the end. My question is: How do I structure an offer to a private lender (friend and/or family) so that they are comfortable and I can ease them into funding my rehab? I definitely want a win-win situation so that it can turn into a future tool I can utilize after the lender is paid out. Any advice is welcome and much appreciated!
Note: I have done a couple private lending partnerships before diving into building my rental portfolio just to get my feet wet so I know how a promissory note works. Ideally, this is what I'd like to do and I'd essentially be the borrower this time around.