Hi Everyone. Im new here. I just bought my first BRRRR property with cash instead of OPM. Im now having trouble finding a lender for $60K in Rehab cost. My purchase price of this home was $10K. 3br. 2 ba. rent will be $1100 a month. ARV is $105k. Who would you all recommend as a rockstar loan candidate to help me knock my first BRRRR deal out the park? Im base in Louisiana.
@Devwin D. Rankins Sr. you bought the property for 10k, needs 60k in rehab, and will rent for $1,100 a month?! This sounds like the holy grail of all deals! Most investors forget that part of completing a successful BRRRR deal is indeed buying the property with cash first. As far as financing the rehab, you have a couple of avenues. First, any hard money lender that verifies your analysis and confirms your numbers will have no issue lending to complete the deal. I would reach out to several hard money lenders and shop around for the best rate and terms. After completing the rehab with a HML, refinance and pull your money out to pay back the lender. Second, and maybe a little more work on your end, network with other investors to raise private money. Both of these options will cut into your ownership/equity, but at the end of the day you need them to complete the deal. Hope this helps!
@Mike Thanks. Yes I was actually thinking about tearing the house down, and placing 4 homes on the property, but I really want to knock this deal out the park and finally get my first BRRRR underneath my belt.