Each loan type will also have a number of fees that you will need topay to secure the funding (eg. you will be paying the broker for commercial,whereas the lender pays the broker in residential financing).My best recommendation is to talk with alocal commercial mortgage broker specializing inmultifamily lending.

Alternatively, you could take a loan against your 401k for that initial amount.Once you’ve secured the property and paid the 5%, you can then work with a private money lender (PML) to close on the property once the deed is ready. 

I'll pass.Very rookie question for you, @Patrick Roberts and everyone else here: I thought that post-Dodd-Frank, the barrier for mortgage lender accreditation/licensing was essentially raised to a point that HML’s and private lenders were effectively iced out of securing loans with a mortgage or DOT.

Is it riskier to mix house hacking with the BRRRR method?

Another option may be to secure the loan using primary residence as collateral. 

You need a securities license to sell securities.

I’m not big on providing THEORETICAL information, so I’ll list the methods I’ve personally used to obtain capital appreciation and wealth building from buying notes, in addition to just collecting the interest. 1.

While off market deals may be your ideal scenario in securing an investment - lets discuss ways in which i can also possibly make that happen for you.Personal Standpoint - Wholesalers -  i would be interested in investing outside my region should there be an opportunity in fix and flip or BRRRR.

In addition to the management fee and interest, you may encounter several other costs when securing a private loan.

Are you saying DMM is acceptable because other methods CAN fail too?