BRRR strategy advice for triplex

[Brennan Crick]

I’m trying to get more info on doing a BRRR strategy. I currently have a triplex under contract. It’s a “creatively” put lease option where I control the property and I pay the seller a percentage of the rents I collect untill I’m ready to purchase the property as a down payment torwards the purchase price ( it’s a year long option to buy) currently I’m renovating the property and getting it ready to rent. And I have untill April of next year to buy the property. SO! With that being said, what the best way to prepare myself to buy, and refi? I will already have tenants in place. And on another note, my credit isn’t all that good and I put all my credit and resources into the renovation. My debt to income is very high. Is there a broker that you have to line this up with? I talked wIth a hard money lender and He laid out to pay the 10% on the purchase price, and then refi into the appraised vaIue of the property after the renovatIon. So he‘ll cash out on the equity and all my hard work! I kinda need that sweat equity. And this is my FIRST deal! Any info will be greatly appreciated!! The property in located in Norfolk, Va.

[Ernest Grindle]

@Brennan Crick Do you have a good option price for the property? My concern for you is that you will have to purchase this property as a personal loan not a commercial loan, and you already have credit issues and a high debt to income ratio, so you may be at high risk of not being able to get financing next year when you go to buy. You definitely don't want to donate your sweat equity to the owner or hard money lenders, so you may need to find a partner to carry the financing. Which brings it back to making sure you have a good option price so you can find a partner.