All Forum Posts by: Michael Lonsdale

Hello @Nicholas Coulter I messaged you on the specific location.

Thanks for reaching out

@Jon Kelly Thanks for your post Jon! I appreciate your insight. 

'Who told you you need 10% down for a BRRRR'- My harder money lender that I'll be using. Do you have another or lower % down for a hard money loan that would be suitable for BRRR? 10% down for a hard money loan seemed good to me, but I'm not an expert here.

And how will you fund the rehab? The above loan is meant for buying and fixing distressed properties. 

As for saving money- Good point and thank you. I started my job recently. I will have these funds in the next few months. But if I can tap into the equity of my house in the next few weeks... I'd like to do that. Having this lump sum of money also gives me some breathing room in case I mess anything up.

"You've been reading for a few years. It's time to get started" Yup... this is why I am posting to the forum, looking for some help.

Thanks again! 

Thank you! I appreciate your suggestion and will truly look into that. 

What do you think would be the best way to tap into the equity of my house? Seems like this might be a faster way to get this money and start.

Dear BP Community :),

LONG Time reader, First time posting! I've read, listened to, watched, and soaked up as much info as I can from this site over the last few years. Incredibly grateful for the people responsible for this site. 

I'm having trouble funding my first deal. (Well, not really my first deal, I've owned one rental before)

Background- I own a primary residence that is worth just over 500K. I have about 120K in equity in the house. I have a 720 credit score. My W2 pays me over 120K a year. My rate is in the low 3s. My job is new so I hardly have any money saved up. 

Problem- I want to start BRRRing but I don't have that initial 10% down to obtain a hard money loan. Obviously, I need that bit of seed money to start.  

Where I'm at- The last few months I've been working to obtain a HELOC on my primary residence as the seed money. Then I'll work to get a hard money loans, so I can start BRRRing. But I can't get a HELOC to close. I'm told my equity is just not enough yet or that I need to show two years at this job. I've gotten tripped up during final underwriting 3 times now.

What should I do to get my initial money so I can start BRRRing and be able to put 10% down?

A. Continue to pursue a HELOC. (If so, recommend someone for me to talk to)

B. Obtain a personal loan and use that money to get a hard money loan and start the BRRR process. (Recently leaning towards this, any suggestions on where to look?)

C. Sell my house and use that money to start investing. (I've owned the house for 13 months) 

D. I was considering a cash-out refi but my rate would almost double. So I'm not sure that makes sense. 

E. Something else, please let me know what I am missing! 

How can I get this initial seed money to then get hard money loans? 

Please let me know what my next move should be. Thanks in advance to anyone who provides suggestions. 

Respectfully, 

Mike