Advice for financing first BRRRR deal

[Alex Lloyd]

I'm reading DGs BRRRR book, and I understand his position on why having 100% cash to purchase your BRRRR property is the way to go (so you can get as much as your money back as possible when you refi, compete against investors coming in with a loan etc.)

That said, I was hoping to make a move on my first property this year (and until reading this book figured I’d be putting 20% down and financing the rest of the deal).

Realistically, if I were to save up straight cash (my personal savings from my job after paying bills, etc.) It would take at least 2 years for me to save up enough of my own cash to purchase a BRRRR home.

So, here are the options I see. I’m reaching out to the BP community here to ask for advice from fellow investors on what you would do and WHY. Any help would be greatly appreciated!

Option 1: Be patient and save for the next 2 years (I’d rather not wait this long if there’s another viable option)

Option 2: Seek private money and go 50/50 on first deal (I can see how this could be complicated with the BRRRR approach, so any insights on what did/didn't work from your experience partnering with an individual investor on a BRRRR deal would be appreciated)

Option 3: Supplement cash with HELOC on primary residence (50ish cash/50ish HELOC, and pay HELOC back before repayment period)

Option 4: Supplement cash with hard money (50ish cash/50ish hard money)

Option 5: Supplement cash with cash out refi on primary residence mortgage

Option 6: any other ideas on on ways you successfully funded your first BRRRR property :)