All Forum Posts by: Frank Pressel

Thank You @Kyle J. That is exactly what I was looking for. I will have to work that out with the private money lenders.

@Kyle J. I understand that is how it is determined. I guess my question is more related to the strategy of how you decide you who you want to give that first position to. In the supplemental material provided when buying @David Greene's book "Buy, Rehab, Rent, Refinance, Repeat The BRRRR Rental Property Investment Strategy Made Simple" (which I should have in the mail soon), he mentions an operating agreement with your private investors in which their is language that promises them first lien or position. What I didn't see was how this is handled when you have multiple sources of cash helping to fund your deal.

I understand various strategies in getting money upfront to do the BRRRR strategy. You could get private money, hard money or use your own. Then you refinance later once the rehab is done and tenant in place. My question is how do you determine first position lien on your operating agreement when you are using multiple sources of money to originally purchase the property. I understand hard money lenders will require to be in that position. What if you use two different sources of private money?