Hard money loans for Brrrr on my first deal

[Jude Eiwone]

I am just beginning to come into real estate investing. I have read a lot and I think is about time to invest. I have some money saved up that I could start with. I am looking at some low entry markets in New York state like Albany or Syracuse or in  Southern New Jersey like Trenton.

I am considering the Brrrr strategy using hard money loans. I am looking for advise on how to navigate through my options as I do not have a W2.

What exit strategies are available to me as I have tax returns for last two year on a business that didn't make much. Will I be able to refi based on that?

If I buy a property cash, am I able to get a Heloc on it after a few months without a W2?

My third option will be to use the available cash as down payment to do three Brrrr deals using hard money loans. Cash flow from all three after a couple of months might be enough incentive for a conventional lender to do a refi on all three properties.

Will any of my three strategies above work?

 kindly give me suggestions on the best investment route to take.

Your suggestions will be greatly appreciated.

Thank you.

[Gina Cook]

I am going to say just from my experience, I actually invest in Syracuse and I am closing another property next week, currently they are being very cautious and strict.  They have requested my pay stubs every few weeks while I was under contract for the house I just closed on this past week.  I put 25% down on that property.  I also know that after listening to lots of podcasts, obtaining HELOCS on investment properties is not impossible but it can be very challenging.  You have to really look around to find a bank that will do it. I do love your idea of showing rent on 3 properties, but I would say that you may have a chance of getting one or two mortgages if you shop around, however 3 may be very tough without a solid W-2.  If you do obtain 3 properties, I would highly recommend using free online property management software to keep perfect track of your income and expenses (a trailing 12) so that you seem more credible to the banks and have something to show them.  That sounds like a great plan!  Just remember if one thing doesn't work, just keep trying and always have a plan A, B, C, and D.   A partnership of some sort may be a great option for you, even if its a temporary one.  Lots of luck to you!