Trying to do my 1st BRRR. Commercial loan or private?

Trying to do my 1st BRRR. Commercial loan or private?

Rental Property Investor · Corpus Christi, TX (78412) · Member since 2020 · 1 post · 0 votes

So this would be my first investment property and I am just getting started. Should I use a private money lender or a traditional mortgage lender to get the initial money to purchase the home and get the rehab money?

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  • Investor · New Britain, CT · Member since 2016 · 25 posts · 8 votes
    6y

    All depends which cost you less, Also your self awareness. With private money you should make sure your capable of executing being the fact a traditional lender has guidelines and rules for each part of the process. Private money should/would be the better option but comes with a larger responsibility.  

  • Real Estate Broker · Los Angeles, CA · Member since 2020 · 46 posts · 18 votes
    6y

    @Adrian Vega do you have private money lined up!? Do that, it’s their money, so they can be much more flexible. A commercial lender is loaning out other peoples money, they have boxes they need to check and narrow frameworks, but is a great option when you don’t have access to a private money lender.

    Make sure you are drawing lines with a private money lender though, they are your lender, not your partner.

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