BRRRR financing for a beginner

[Josh Pryor]

BP family, I need some guidance.

I want to begin BRRRR investing, but lack capital. Big plot twist right? Lol

So my question is should I save up the certain amount of cash to be able to buy the house and afford the remodel or would it be wise to potentially find a private lender to begin now?

My experience is low, but have completed a live in flip the profited 25k, and sold for more than asking. Using that as a down payment, I purchased a duplex that I am adding value to in a few areas. But!

I have remodel experience in my line of work too. As a manager of a hardware big box home improvement store for 10+ years now, I oversaw a $3 million store remodel, while managing to run the store team, General contractor, fixturing contractor, electrician and meeting deadlines throughout all 4 months.

Any idea if that’s enough for a lender to work with? I know that both are options, but have you done this? Feedback?

[Stephanie P.]

Originally posted by @Josh Pryor:

BP family, I need some guidance.

I want to begin BRRRR investing, but lack capital. Big plot twist right? Lol

So my question is should I save up the certain amount of cash to be able to buy the house and afford the remodel or would it be wise to potentially find a private lender to begin now?

My experience is low, but have completed a live in flip the profited 25k, and sold for more than asking. Using that as a down payment, I purchased a duplex that I am adding value to in a few areas. But!

I have remodel experience in my line of work too. As a manager of a hardware big box home improvement store for 10+ years now, I oversaw a $3 million store remodel, while managing to run the store team, General contractor, fixturing contractor, electrician and meeting deadlines throughout all 4 months.

Any idea if that’s enough for a lender to work with? I know that both are options, but have you done this? Feedback?

Best bet, for the highest LTV on the acquisition, would be to get a partner that has experience. Don't think you have to do this alone. There are plenty of folks that have experience that would mentor you on your first few deals and there are lenders that allow for experience partners to get almost 100% financing. Check your local REIA or meet up.

Once the renovation is done and the property is stabilized, you should be able to refinance out at about 75% loan to value with cash out on the new appraised value to do the next one.  Make sure your numbers are tight and your credit stays strong and you should be fine.

Best of luck

Stephanie