BRRRR - Buy, Rehab, Rent, Refinance, Repeat
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 5 years ago on . Most recent reply
Paying private lender back with HELOC
I have a potential capital partner that would pay cash for my future buy & hold portfolio. What are your thoughts on the below strategy?
- Lender loans cash for a rental property
- I put property in my LLC
- lender and I enter into an agreement that outlines our terms
- I use my own reserves to renovate
- obtain HELOC to pay lender back, replace reserves
- Repeat
Or.. what strategies are recommended when a cash partner is available to you?
Thank you in advance!
Most Popular Reply
Originally posted by @Carrie Mims:
I have a potential capital partner that would pay cash for my future buy & hold portfolio. What are your thoughts on the below strategy?
- Lender loans cash for a rental property
- I put property in my LLC
- lender and I enter into an agreement that outlines our terms
- I use my own reserves to renovate
- obtain HELOC to pay lender back, replace reserves
- Repeat
Or.. what strategies are recommended when a cash partner is available to you?
Thank you in advance!
That strategy should work. You should see what is the best long term carry cost strategy. Find a hard money/private money that will lower fees/rates in each deal you complete.