Brand new to REI and leaning towards BRRRR

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Brand new to REI and leaning towards BRRRR

Mark James Passi
Member since 2020 · 2 posts · 0 votes

I am brand new to REI and was thinking of doing my first BRRRR. I am wondering if it would be beneficial to file an LLC for lending purposes or does it even matter. I am also unclear on how exactly paying back the HML or private money lender works. Thanks in advance!

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  • Account Closed
    Rental Property Investor · Mechanicsburg, PA · Member since 2018 · 281 posts · 176 votes
    6y

    Hi Mark - generally it's harder to get a loan under an LLC especially if you are starting up.


    Here's a good article on the BRRRR (Buy Rehab Rent Refinance Repeat) method.

    https://investfourmore.com/brrrr-method/

    With some good info on hard money and private money lenders.

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  • Darius Ogloza
    Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    The HML/private lender gets monthly interest payments and gets paid back the balance of the original loan with the refinance cash.

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