Good Idea? Private + Hard Money

[Tucker Cummings]

I've finally been able to take down my first BRRRR deal! I've done it with 100% my own money, which was a huge personal accomplishment.

While I'm super thankful for this, it didn't take long for me to realize that doing 1 BRRRR deal every 6 months is going to take a really long time to reach financial freedom. I know using OPM is going to be the way to accelerate my progress. My lack of experience prevented me getting hard money, and it was personal reasons why I didn't want to approach private lenders before.

My question is what are the pros and cons of combining hard and private money? For example, an HML that will finance 75% LTV + Rehab and a PML that will Loan the remaining. That way I'm no money into the deal, have a fully funded deal, and I can refinance at the end and pay back my lenders. I'll have about 100k in reserves of my own on the side while all this is going on.

Anybody doing this that can offer some advice on pros and cons? Thanks!

[Jody Sperling]

The hard- plus private-money is a great strategy, and it's very high risk. If you want to accelerate your journey to financial independence, though, it's a good strategy.

But have you considered partnerships? I know people who partner and increase velocity by four or five times. It's the fastest way to scale.