Hard Money Loans for first BRRRR property?

[Corey Smithfield]

Hello,

I am just beginning to dive into real estate investing (reading several books on Bigger Pockets) and I am very interested in acquiring long term investment properties using the BRRRR method of real estate. I currently do not have extra cash set aside to make a cash deal so I am looking into other alternatives for when I am ready to make my first deal. Is a hard money loan a good option for a first time investor or is this a risk that should be used only for wealthier, more experienced investors? I just began reading the BRRRR book by David Greene so he might answer this question for me but I figured it wouldn't hurt to get some other opinions.

Thanks.

[Jaysen Medhurst]

HML is an option, @Corey Smithfield. It does require capital, though. Typically you'll need 15% of the purchase price and be able to float interest-only payments during the renovation. If you're still learning, you may have trouble finding a HML willing to take a chance on you. It depends on the deal and how well you present it.