Private Money for BRRRRs

[Griffin Malcolm]

I'm underway with my first BRRRR and it's going well. Looking like I'll keep maybe 5k in the deal but it will cash flow about $400 for me. I want to be able to repeat this as fast as possible, so I'm wondering if anyone has used private money to fund BRRRRs and how it looks. It seems a little messy splitting equity and the cash-out refi check, as opposed to a flip where you just split the profits and walk away. Can someone share how they've structured private money for BRRRRs? Thanks!

[Griffin Malcolm]

Quote from @Robin Simon:

Quote from @Griffin Malcolm:

I'm underway with my first BRRRR and it's going well. Looking like I'll keep maybe 5k in the deal but it will cash flow about $400 for me. I want to be able to repeat this as fast as possible, so I'm wondering if anyone has used private money to fund BRRRRs and how it looks. It seems a little messy splitting equity and the cash-out refi check, as opposed to a flip where you just split the profits and walk away. Can someone share how they've structured private money for BRRRRs? Thanks!

Are you referring to private money specifically as like an individual person investor or also including real lending companies like Hard Money Lenders / Private Lenders? In either case, sharing this article published last year on this exact topic - BRRRR funding options and pros/cons etc, hope it can help!

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

I have experience with HM lenders, but on my property now I still had to fork over 30k in liquidity to get the deal going. I'd like that to be financed as well somehow, and it seemed to me like a private lender would be the best way forward for that, but all the profit on the BRRRR is stuck in the deal as equity, so paying the private lender back seems challenging to me. I will check out the article though!