BRRRR creative financing options for new investor with no cash?

[Michael Szypulinski]

Hey everyone,

I am a new investor that has an interest in completing my first BRRRR (and first deal). I have hit a road-block with financing and was wondering what strategies the BP community has to overcome this obstacle? what forms of financing is used commonly and successfully for a BRRRR in SFH, small and large multifamily?

Thanks,

Mike Sz.

[Nathan Roberts]

Hi @Michael Szypulinski,

There may be a few options available for you. If you are a Veteran you may be able to obtain a VA loan where the financing LTV is 100%, meaning no down payment needed. There are also multiple FHA loans available for first-time homebuyers with the potential of putting down as little as 3.5% of the purchase price. Your state may also have a first-time homebuyer program as well. I would recommend talking to a local loan officer to gather information about mortgage requirements. If cash is an issue you may have trouble obtaining financing from a bank. If you absolutely have no means of gathering cash, it may be in your best interest to save up until you have a downpayment for a conventional loan, if you do not meet the requirements for the loan options above. Feel free to message me if you have any additional questions!

Warm Regards,

Nathan Roberts