Updated about 5 years ago on . Most recent reply
Your Favorite Financing Strategies
Hello BP Gang! Question for you all. I am still a newbie investor with only one deal under my belt thus far. I am looking to break the mindset hurdle of "My savings account dictates what/how often I buy." I know that if I want to scale I have to learn the skillset of acquiring properties without using my own cash or by recycling my own cash. The ideas and drive is there to find the deals...im ready to start letter writing campaigns, sign campaigns and searching hard to "buy right" with the ultimate goal of performing BRRRs. Here's my hurdle...and I know this is probably a silly one...but I wouldn't know what to do once I found a deal. I understand every situation can be different and require different or creative financing approaches. I want to have an arsenal going into it thought.
So, I'm looking for some of your favorites or options you know you have going into a campaign knowing you wont be able to buy with your own cash. I do have the luxury of having some family and friends with cash willing to invest with me but I want to be rock solid on my education and approach before taking on something like that with good acquaintances especially family. If I did utilize these people to invest what's your recommended approach to structuring something like that. I bring the deal they bring down payment and rehab, perform a cash out refi then split equity and cash flow? Is it better for them to just get interest on their money and I keep the property solely? How would you structure it if they also wanted equity?
Lastly, what are good book recommendations on this topic? I already ordered the BP Low or No money down book. Anything else you guys suggest? Thank you!