Confusion on funding for the BRRRR Method
Hello,
I am still trying to understand the real estate process and am having trouble understanding how to fund the BRRRR method. Maybe you guys can clarify for me?
I have heard of people being able to use a conventional loan with 20% down to buy a SFH that they plan to BRRRR, but I have also heard that many banks will not loan to people who are purchasing SFH that are not considered a "livable" condition upon purchase. Is it common to get a conventional loan for the BRRRR method?
I understand that another route would be to use a private lender or HML, but if it is your first real estate purchase/rehab are they even going to be willing to work with you? I would imagine that they would want you to have some experience prior to working with them. If that is the case how are you supposed to get experience if you can't BRRRR with a conventional loan and you can't use a private lender because you don't have experience?
If anyone can describe how they funded their first BRRRR method I would greatly appreciate it!
Thanks everyone!