First property - funding

[Glenn Curry]

Hi my name is Glenn, and my wife and I are looking to do our first BRRRR deal in the beginning of 2019. We stay in the chicagoland area. The problem that we are running into is funding the renovations. We thought about using credit cards to fund the renovations but don’t want to risk damaging our credit score to do so. Also, we believe we can do a conventional loan and pay the 20% down payment but the renovation cost is what we will have trouble coming up with. Any suggestions would be helpful. Hard money is our last option and we don’t have friends or family who will lend us the money. Anyone who’s ever been in this situation, what did you do?

[Karen Rittenhouse]

@Glenn Curry

As @Matt Crusinberry recommended, save save save. Real estate is a very expensive business and, no matter what you read or hear, you need money to invest in real estate. Later, when you have contacts, negotiating skills and a track record, there are creative ways to do more without funds, but it's not a way to try to start.

That being said, the most important thing you can do is network network network. Attend all the local real estate investor meetings that you can, and there are a ton in the Chicago area. Find meetings on MeetUp.com and NationalREIA.org

Real estate investing is not an isolated business. The people you get to know at these meetings will teach you the vocabulary, the hot markets in your area, what vendors to use (attorneys, contractors, subs, title companies, lenders, etc.). 

And, being newer as you are, they are probably the ones who will loan to you starting out. Private money is not only from friends and family. If you have a great deal, other investors in your area will loan to you for interest and points or a piece of the deal. Better to pay for funds than to lose the opportunity. When you have a great deal, the funds are always available.

Good luck to you and your wife!