Reaching out to anyone in the Bigger Pockets community that would love to help a brand new investor pick his feet up off the ground with advice!! Currently reading David Greene BRRRR book but still finding myself troubled on how to get started with the B in BRRRR
@Sean Jones what are your specific questions? The B in BRRRR is tough, because you have to "B" a good deal with a lot of room to increase the ARV.
@Nicholas L. I don’t understand when Brandon and David are talking about buying homes with cash honestly. A lot of my questions stem from that topic.
@Sean Jones it's a good question. Most people use conventional financing - i.e., a mortgage - to buy their primary residence, and so a "cash" purchase of an investment property seems a lot different. There are actually different ways to buy with "cash"... the best, and the best way to BRRRR, is having 100% your own, literally sitting in your own checking account. When you close, there's no bank, no points, no appraisal - you just close with your own cash. But private money and hard money are cash-like - they're just more expensive, because they're actually loans, and you have to pay interest on them. They're just potentially faster than conventional financing. Make sense?
@Nicholas L. Yes it does! Thank you. I hear a lot about Hard money lenders. How do I find those ?
@Sean Jones the best way is to go to local REIAs and find them in person. Alternately you can also find them here in the BP directories.
Keep in mind that hard money is expensive. You pay points to buy the loan and interest to service it.
@Sean Jones Welcome to BP, not everyone has that type of cash to buy their first deal, don't let that turn you away! Many people simply use conventional financing starting out.
@Blake Park thank you for that !
@Blake Park thank you for your response! My next question than is can you BRRRR with a conventional loan or do you have to buy a property in cash?
@Sean Jones of course you can. I have a lot of clients in Columbus that do this exact same thing. #Leverage
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