I'm reading David Greene's book, and I'm sure he eventually answers this question, but the way that he's explained it so far is that you pay cash for the house upfront. Is there no way around this when doing BRRRR?
There are some alternative methods to paying "cash" out of your own pocket.
1) Private or hard money lenders: You can use private or hard money loans to finance the initial purchase and rehab costs. Can require 10-30% down though depending on the lender and 1-3 points.
2) Home Equity Line of Credit (HELOC): If you have equity in an existing property, you can use a HELOC to fund the purchase and rehab of a new property. This allows you to leverage your current assets without paying cash upfront.
3) Partner with other investors: or "OPM" other people's money. Partnering with other investors can help you share the initial costs and spread the risk. A partner can contribute cash, while you bring your expertise in the BRRRR method and handle the property management.
4) Seller financing: In some cases, you can negotiate with the seller to finance the property purchase. This method can save you from paying the full amount upfront and you can negotiate terms with the seller on the note.