BRRRR Financing Options

[Noah McPherson]

Hey Guys,

I'm looking to get into a BRRRR deal next. First, I'm going to go after hard money (though I'd do the deal by any means of financing). As a new investor, I see a potential problem with using hard money, as I don't have a track record. So, I'd like any advice I can get about approaching a hard money lenders for financing. How can I best help them out? Do people typically bring them deals from distressed sellers? Foreclosures? I'm looking for any bit of information that can help me bring them the the kind of deal they want and present them a deal in a way that solves their problem. Thanks

[Andrew Postell]

@Noah McPherson it is true that there might be some limitation that a hard money lender might have if it's your first time. Usually we seek out hard money lenders that lend 75% of the ARV....but maybe they will restrict you to 70%. Which would mean more money out of your pocket. So as long as you have the funds to cover the difference you will be good. You can also partner with someone that does have experience...you will share costs but that means you have to share profits too. Or you can buy another primary home (do you have one currently?) and house hack. Lower out of pocket money that way. All sorts of ways to skin this one.