Best Financing Methods

[Alecia Downing]

What are your top financing methods used for BRRR?

[John Mathew]

Hello Alecia! I have jot down top financing menthods used for BRRR. Hope this helps :)

Banks Loans:

Bank loans are the most common financier of BRRR transactions, and this is where you traditionally go when you want to buy a real estate property with an existing mortgage.

Hard Money Lenders:

A hard money lender is a private lending institution that provides real estate loans with certain terms and conditions, which may include requiring the borrower to put up collateral in order to protect their investment. 

Rental Loan:

A rental loan is a mortgage or home equity line of credit that has been written to help finance the purchase, renovation, and renting out of the real estate property.

Single Close Loan:

A single close loan is a type of hard money lender that provides the borrower with all funds needed for purchase, renovation, and renting out in one lump sum.

Private Money:

This option usually requires less work on the borrower’s part when it comes to paperwork because they are borrowing money with personal connections

Home Equity Line:

A home equity line allows people who have good credit scores and assets in their homes use their existing property as collateral for funds needed for renovation or buyout purposes.

Home Equity Loan:

The interest rates may be higher than single close mortgages but they’re less expensive over time because homeowners don’t need to worry about refinancing again once they’ve paid down significant amounts on their mortgage balance.