New York City, NY · Member since 2017 · 33 posts · 11 votes
Hey everyone - I've read up on the BRRRR method from the BRRRR primer and other sources and specifically looking into a leveraged BRRRR Strategy. Essentially looking to determine a strategy for using hard money for the down payments on a rehab, fixing it up and refinancing to pay back the hard money. That way I could keep borrowing and flipping properties using outside funding. Appreciate any advice and success stories from those using this and good places to find seed capital.
@Tyler Horton Great question. The best way to do BRRRR is build up seed capital through a diverse set of sources. Here are some ideas:
1. Business partner - can you find a business partner that can put up seed capital
2. HELOC of PLOC - get an equity line of credit or personal line of credit against your house or your income
3. Credit cards - Find low interest credit card offers or a company that can help you find them like Seed Capital or WCAP Financial. Both are great companies that can help you maximize your credit
4. Seller Financing - Find properties where you can negotiate seller financing
One note, hard money is great, but it is expensive so be careful on how you use it and how much you use it.
@Tyler Horton Great question. The best way to do BRRRR is build up seed capital through a diverse set of sources. Here are some ideas:
1. Business partner - can you find a business partner that can put up seed capital
2. HELOC of PLOC - get an equity line of credit or personal line of credit against your house or your income
3. Credit cards - Find low interest credit card offers or a company that can help you find them like Seed Capital or WCAP Financial. Both are great companies that can help you maximize your credit
4. Seller Financing - Find properties where you can negotiate seller financing
One note, hard money is great, but it is expensive so be careful on how you use it and how much you use it.
@Account Closed thanks for these ideas! I've actually been working with Seed Capital and they were really helpful with getting credit cards that I've put toward some of my renovations. I think the HELOC is an interesting option too and I do like the idea of a secured loan against the properties as a more traditional alternative to hard money. I'd love to hear others inputs on each of these options or if you've thought of other options.
Hey @Tyler Horton so I think you've got the BRRRR method down, but I think now that you've got down it comes down to finding funding sources for your seed capital. I typically stay away from hard money when I can, I'd recommend looking into some of those options. I've been pretty successful with a business partner who has an equity stake but you have to figure out what works best for your situation.
Personally been a big fan of WCAP and their Seed Capital platform. Was definitely helpful to me for securing credit when it came to working on renovations and having some more capital to work with on REI.
I am confused about WCAP Financial and Seed Capital. What exactly are they doing? Both sites were quite vague and wanted me to sign up for info. Seed Capital wanetd to charge me for their info... btu without telling me much about themselves. To me, that seems really shady?
@Brian H. Seed Capital and WCAP Financial is a consulting company that helps you get personal and business credit cards. They have an algorithm that tells you the best companies to apply for to gain credit and they help you navigate to find the best ones. You may have just been unlucky and talked to a pushy sales rep. I have worked with them before and had a good experience. If you need help send me a DM and we can talk through your situation and what is the best options to raise money for your properties.
One thought to add. If you are using the BRRRR strategy, it becomes easier to get seed capital as you get more properties because you will be able to get HELOCs and/or get loans against the cash flow of the properties for working capital (WCAP) financial resources.