BRRRR method and a first time Investor

[Tim Sipowicz]

I've taken the deep dive into REI about a month and have been consumed with information ever since. I'm looking to purchase my first property within the coming months and the BRRRR strategy has really stuck out to me as a great opportunity. Only issue is, every story I've heard has been one of success and it CANNOT be just that easy. I've watched webinars and have learned about different risks but I'm trying to understand all of them and see if it's a good fit for a first time investor like myself. Is it really a matter of nailing your numbers like rehab costs, getting that correct appraisal you're looking for and having an eye for a great deal?? I've been very back and forth with financing as well as it's related to the BRRRR method and stuck whether I should be focusing on a hard money lender, which I know can be expensive depending on interest rates and possibly points, or stick with a conventional loan. I want to start reaching out to lenders but also have a solid foundation on how I would like to approach the deal financially. Any input would be greatly appreciated and I apologize for this winded post, as you all know, there's a ton of info out there to try and digest!! Thanks and I look forward to your responses

[Crystal Smith]

Originally posted by @Tim Sipowicz:

I've taken the deep dive into REI about a month and have been consumed with information ever since. I'm looking to purchase my first property within the coming months and the BRRRR strategy has really stuck out to me as a great opportunity. Only issue is, every story I've heard has been one of success and it CANNOT be just that easy. I've watched webinars and have learned about different risks but I'm trying to understand all of them and see if it's a good fit for a first time investor like myself. Is it really a matter of nailing your numbers like rehab costs, getting that correct appraisal you're looking for and having an eye for a great deal?? I've been very back and forth with financing as well as it's related to the BRRRR method and stuck whether I should be focusing on a hard money lender, which I know can be expensive depending on interest rates and possibly points, or stick with a conventional loan. I want to start reaching out to lenders but also have a solid foundation on how I would like to approach the deal financially. Any input would be greatly appreciated and I apologize for this winded post, as you all know, there's a ton of info out there to try and digest!! Thanks and I look forward to your responses

Whether your a first time or an investor with a lot of experience I believe one of the most important things missing from your list is "cash reserves". Whether you go conventional or hard money you need cash reserves. it could be your cash or someone else's. A lender will want to know that have and are prepared to put some of your own skin in the game.  so be prepared to share your own balance sheet.