Can I ask a dumb financing question?

Question

Brent Coombs · Answer

@Ryan Baker, Question: in six months time, how much will your Lender appraise it at (ie. will they let you have ALL your original cash back)? It's at THAT point that you'll be able to confirm that you bought a great "deal", but, you should already have a clue, based on whether you paid under-market and/or know how to value-add! (I'm talking about the BRRRR strategy, where "OPM" is the name of the game once you've got the first one under your belt)! Congrats on your first rental....

Taylor Kamal · Answer

Jeremy makes great points.

You also have to remember that velocity kicks in. 1st property @ 20% seems daunting, but if you're cash flowing 200-400 a month, that will help considerably with your 2nd property's down payment. The 3rd will be even easier w/cash flow from 1st & 2nd... and it'll snowball from there.

Jeremy Hunter · Answer

other people's money or opm would be a good bet. So raising money via other people and using other means of leverage like bank loans and credit cards are the other thoughts that come to mind. Leveraging other nontraditional lenders and hedge funds are other sources of funding. And it would also depends on types of properties being purchased where 20%  could be a couple of thousand and not ten thousand or more.

Remember that the folks that are able to do those deals have also been at it for awhile and have built up their credibility among the investor community. Build relationships with them and see how they have built their systems and processes for doing what they do. I know that there are ways to get their info from the podcast notes of those that you mentioned, and that would be a good starting point.