Hard/Private money for BRRRR

[Dustin Figenscher]

Hey guys & gals, Thanks to a spontaneous webinar and a kick in the butt by @brandon turner's advice, I went out and bought my second property. It is a SF 3bd/2bath in a fairly desirable area and conveniently away from my primary residence, so travel to home and Home Depot is a piece of cake! Renovation should be done in two weeks, and rented with roughly $550 cashflow monthly. But that's a conversation for another forum. I am reaching out for advice on how to keep my business rolling and purchasing more properties. My first two property's were purchased the old fashion way with saved funds with an FHA on the first and conventional on the second. But now I'm basically tapped out of funds until I can save again but I don't want to wait a year. This is where I am trying to find a good lead on private or hard money. The larger companies for hard money require large amounts of liquidity by the borrower to be approved, but I know there are plenty of investors out there that have creatively worked with hard and private money at the early stages in real estate investing. I have proven success with my properties and personal management, but not 50k sitting in my bank account. I am just looking for a creative and constructive conversation here so I can get my wheels turning.. have a great weekend, all!

[Kerry Boyle]

So not totally sure about what you have going on with your existing properties in terms of value and equity, but if you are equity-rich you can cash-out refinance to get your liquidity up and invest more. You typically would have to sit on at least 35%+ equity to get anything meaningful out of a HML cash-out.

If that is not a possibility, there are some lenders that don't require a lot of money down and get their money back at the end of the loan. I'm not sure how many people are doing no money down or little money down in New York though, if that is where you are investing. It is a tough market for lenders in general.