Rental Property Investor · Youngstown, OH · Member since 2016 · 19 posts · 2 votes
Hello All,
Closed on my first property back in February. Now have actual tenants moving in a few weeks from now. I’m attempting the BRRRR strategy but can’t refinance for another few months due to having low equity in home. Is there another way to scale at a more accelerated pace? Just looking at ways to get as many units as possible (good deals of course). All pointers, success stories, and advice are welcome!
Thanks
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
You could look to partner with someone who has more money but doesn't have the time to find properties and manage them. Or perhaps private lenders. Or you could flip a house or two to raise more capital.
Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
8y
I have a client who was recently approved for a line-of-credit of sorts from a very small local bank. They did the underwriting on the front-end based on them as the borrowers (in this case an LLC investing in single family and multi-family) and once the approval was issues the client had the ability to purchase anything and the bank would fund the purchase at %75 Loan to Value. They could close in title+4 days, making it nearly as fast as cash for on-market deals.
Something like that through a small local bank looking to get into the investment real estate game could be a warp-speed-ahead button.
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
You could look to partner with someone who has more money but doesn't have the time to find properties and manage them. Or perhaps private lenders. Or you could flip a house or two to raise more capital.
Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
8y
@Grant Mitchell Apart from the great advice on offer, you might also want to consider the additional liquidity constraints buying additional properties will put on your personal balance sheet.
If you decide to bring in partners/outside capital, you are now less of an investor and more running a real estate business. Nothing wrong but 2 very different approaches.
I have a client who was recently approved for a line-of-credit of sorts from a very small local bank. They did the underwriting on the front-end based on them as the borrowers (in this case an LLC investing in single family and multi-family) and once the approval was issues the client had the ability to purchase anything and the bank would fund the purchase at %75 Loan to Value. They could close in title+4 days, making it nearly as fast as cash for on-market deals.
Something like that through a small local bank looking to get into the investment real estate game could be a warp-speed-ahead button.