Newbie investor needs guidance on BRRRR

[Account Closed]

This summer I'll be selling my home and moving into a new construction. The home I'm in is paid in full, so I'll be collecting the full amount of equity; about $225,000. I have a buyer lined up already and my new construction is on par to be done on time. I plan on using that capital to start BRRRR investing to build cash flow. My question is, should I tie up a chunk of my personal capital to pay acquisition/rehab or should I use loans to cover the costs? Thanks for reading :)

[Johnny Lynum]

@Matthew H. The hard money loan is separate product and you pay closing cost on both. However, the credit union closing costs are straight forward and not excessive. The credit union product is a cash out refinance loan and it can be leveraged with a portfolio if you have more than 1 property. The only requirement is that your LLC has to be the owner and on title, which keeps it from your personal credit report too.

It's definitely challenging to find good deals in a market like Austin, but keep the faith! Keep building your network there with other local investors and actively looking. Taking action and doing your analysis are critical to success!

Make sure you take a look at my YouTube channel I launched last month. I talk about some of the rules of thumb that I have used in my business and the keys to getting started! Dont hesitate reaching out if I can help out all! Best wishes!

https://youtube.com/user/wingman2325