All Forum Posts by: Brian Garrett

I have investment capital that's not a problem. The problem is not being able to show proof of income. I have cash, I have a great credit score and I have zero debt. Finding money isn't the problem it's being able to leverage in order to use the BRRRR strategy that's the issue. What do you suggest? I'm stuck between a rock and a hard place because even though I plan on using cash for flips to continue to build working capital I still want to be able to place tenants in some buy and hold properties to generate cash flow and then cash out refinance to keep rolling the money over into new properties in order to build up my portfolio. Any advice is appreciated. Thanks David!

So what do you suggest I do? I have cash, I have a great credit score and I have no debt. I'm planning to use cash for some flip deals to build more working capital but that still doesn't help me with being able to buy BRRRR cash flow properties. Any advice?

I'm still not understanding the positioning. Perhaps we just have a difference in opinion. I don't see flips as a high level of risk at all if you do the proper due diligence, buy it right on the front end and are familiar with your market/neighborhood/comps etc. Anyhow thank you for your perspective!

You're way ahead of me since at least you own a property already and have some sort of income to show. I don't own a home and have never purchased a home so the first flip or BRRRR property I buy will be my very first home purchase. Trying to figure out how to navigate this and make it work. It's frustrating because I have cash, I have great credit and I have no debt.

 The problem even with this scenario is I would still have to pay cash on the front end for the property assuming I wouldn't be able to get a conventional loan without proof of income. Then even after I rehab the property and place a tenant in it I would have to cross my fingers I'm able to find somewhere to cash out refinance after 6 months which at that point I'll have only had a tenant in the property producing rental income for a very short time since most of the time will be performing the rehab. If I can't find a cash out refinance at that point then I have a lot of my cash stuck in this one property which is a big problem for me to scale up. Follow me? This is where I'm having a hard time.

@Michael Evans I appreciate the lengthy response but I'm not quite sure it answered my question for my particular situation. I'm aware of how appreciation and cash flow work and I understand that. I was looking for a more simplified answer as to why cash is bad for flips and leverage is bad for buy and holds when I see it as the complete opposite. Just wanted to hear your simple logic and reasoning behind your strategy since I'm not understanding the value positioning it that way. Anyways thanks for taking the time to reply!

There's got to be a way for those of us who can't show income to still be able to implement the BRRRR strategy. Or at least I'm hoping so?

@Thomas S. What would you suggest for my particular situation? Buying the house cash doesn't make sense because if I can't do a cash out refinance then I'd have my money parked there with no way to get it out. Do I need to scratch the BRRRR method completely and just do all cash flip deals for now to start showing income? Thank you in advance I appreciate your input.

@Chris Mason What happens in the scenario where I have a tenant in place and there is rental income? Would I have to wait 2 years to show that rental income before I would qualify for any sort of conventional loan or be able to cash out refinance? There's got to be a way for those of us who can't show proof of income (but have solid credit scores, have cash and/or assets, have no debt) to still be able to implement the BRRRR strategy. Or at least I'm hoping so?

P.S. I'm not specifically asking for a 30YF mortgage I'm just looking to see what options I would have in general, if any, so I can determine if BRRRR will even work for me or not.

@Chris Mason Do you have any suggestions for my particular situation being that you're an experienced lender? I also made this thread with more detail:

https://www.biggerpockets.com/forums/67/topics/427402-brrrr-without-proof-of-income