I've been studying House Hacking for about a month now until I came across the BRRRR Strategy (Buy,Rehab,Rent,Refinance,Repeat). I wanted to know what are some good Hard Money Lenders out there for first time investors ? Should I go and get a pre-approval like I would for a Conventional loan?
If you are new and have a good opportunity to house hack first, that is a great strategy to move forward with. Using HML is really expensive with fees upfront that will take any savings/reserves that you may have. In my opinion, unless you have a lot of cash on hand, this could slow you down. Also, there are several benefits to house hacking. I'll name a few:
1) You will gain a lot of valuable experience and knowledge about renting and owning an investment property. AND you will be PAID to learn by your tenant paying you rent.
2) You will be really close to your property and can attack any issues that may arise in short order. Also, another learning opportunity.
3) You will be able to take advantage of OPM while living for free possibly, appreciation of your property, and depreciation all while learning and focusing on your strategy for your next move without the time and stress that MAY come with buying a rehab on your first deal. Now, many people do this for their first property it CAN be done. You just need a good plan.
Good luck to you and I hope this helps!
Look toward an FHA203K or Fannie Mae Homestyle Renovation or a Freddie Mac's renovation loans.
@John W Evans thank you so much for the insight! I think my plan is to Start with House hacking and scale into the BRRRR strategy.
You will not go wrong with that strategy!
Good luck bud, go kill it!!!
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