Hard Money Lenders for BRRRR Stradegy

Member since 2022 · 3 posts · 2 votes

As a new investor, I like others am looking for hard money lenders. I am finding deals but after one of 2, the 20% down will be tough. I have a great w-2 job and credit. Just looking for ways to get going and scale. Any advice is appreciated.

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Matthew Wilson

Rental Property Investor · Greater Philadelphia, PA · Member since 2021 · 34 posts · 22 votes

Hey @Chad Blankenship ,

Saving up for that 20% can definitely be a daunting task. I was in a similar position as you (great job, credit, hustle, knowledge, but limited capital), and realized the best thing I can do was network and try and find the right partner(s). It worked for me and I ended up finding 2 equity partners who funded 80% of the DP and rehab costs for my deal.

I would recommend that same strategy or something similar. Definitely recommend reading Raising Private Capital if you have not done so yet. It will give you all the info you need. There are also a bunch of blog posts here on BP around finding partners.

Try attending meetups, reaching out to specific investors in your market or asking people in your sphere of influence if they'd be interested in real estate partnership opportunities!

If you have more questions feel free to reach out and connect with me!

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Matthew Wilson
Rental Property Investor · Greater Philadelphia, PA · Member since 2021 · 34 posts · 22 votes
3y
Hey @Chad Blankenship ,

Saving up for that 20% can definitely be a daunting task. I was in a similar position as you (great job, credit, hustle, knowledge, but limited capital), and realized the best thing I can do was network and try and find the right partner(s). It worked for me and I ended up finding 2 equity partners who funded 80% of the DP and rehab costs for my deal.

I would recommend that same strategy or something similar. Definitely recommend reading Raising Private Capital if you have not done so yet. It will give you all the info you need. There are also a bunch of blog posts here on BP around finding partners.

Try attending meetups, reaching out to specific investors in your market or asking people in your sphere of influence if they'd be interested in real estate partnership opportunities!

If you have more questions feel free to reach out and connect with me!

3 Reply
Tayo Black
New to Real Estate · Northern VA · Member since 2022 · 32 posts · 15 votes
3y
Quote from @Matthew Wilson:

Hey @Chad Blankenship ,

Saving up for that 20% can definitely be a daunting task. I was in a similar position as you (great job, credit, hustle, knowledge, but limited capital), and realized the best thing I can do was network and try and find the right partner(s). It worked for me and I ended up finding 2 equity partners who funded 80% of the DP and rehab costs for my deal.

I would recommend that same strategy or something similar. Definitely recommend reading Raising Private Capital if you have not done so yet. It will give you all the info you need. There are also a bunch of blog posts here on BP around finding partners.

Try attending meetups, reaching out to specific investors in your market or asking people in your sphere of influence if they'd be interested in real estate partnership opportunities!

If you have more questions feel free to reach out and connect with me!

What about getting an unsecured loan for the down payment to take advantage of using OPM? @Matthew Wilson
0 Reply
Matthew Wilson
Rental Property Investor · Greater Philadelphia, PA · Member since 2021 · 34 posts · 22 votes
3y
Quote from @Tayo Black:

Quote from @Matthew Wilson:

Hey @Chad Blankenship ,

Saving up for that 20% can definitely be a daunting task. I was in a similar position as you (great job, credit, hustle, knowledge, but limited capital), and realized the best thing I can do was network and try and find the right partner(s). It worked for me and I ended up finding 2 equity partners who funded 80% of the DP and rehab costs for my deal.

I would recommend that same strategy or something similar. Definitely recommend reading Raising Private Capital if you have not done so yet. It will give you all the info you need. There are also a bunch of blog posts here on BP around finding partners.

Try attending meetups, reaching out to specific investors in your market or asking people in your sphere of influence if they'd be interested in real estate partnership opportunities!

If you have more questions feel free to reach out and connect with me!

What about getting an unsecured loan for the down payment to take advantage of using OPM? @Matthew Wilson

It is certainly a strategy some people have gone with. Although there are some pros/cons, in the end I am of the belief that building partnerships and learning the skills around that will pay off far more than the cashflow you'd get from getting to close on an investment by yourself and offset the cashflow you'd be losing out on by splitting it with a partner.

I am not super familiar with using an unsecured loan (so thank you for opening that idea up to me!) but I did find a BP post on the topic that was pretty informational:https://www.biggerpockets.com/...

The more tools in your toolbelt, the better.
1 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Wholesale the deals you're finding until you are sitting on 20%.
1 Reply
Tayo Black
New to Real Estate · Northern VA · Member since 2022 · 32 posts · 15 votes
3y
Quote from @Matthew Wilson:

Quote from @Tayo Black:

Quote from @Matthew Wilson:

Hey @Chad Blankenship ,

Saving up for that 20% can definitely be a daunting task. I was in a similar position as you (great job, credit, hustle, knowledge, but limited capital), and realized the best thing I can do was network and try and find the right partner(s). It worked for me and I ended up finding 2 equity partners who funded 80% of the DP and rehab costs for my deal.

I would recommend that same strategy or something similar. Definitely recommend reading Raising Private Capital if you have not done so yet. It will give you all the info you need. There are also a bunch of blog posts here on BP around finding partners.

Try attending meetups, reaching out to specific investors in your market or asking people in your sphere of influence if they'd be interested in real estate partnership opportunities!

If you have more questions feel free to reach out and connect with me!

What about getting an unsecured loan for the down payment to take advantage of using OPM? @Matthew Wilson

It is certainly a strategy some people have gone with. Although there are some pros/cons, in the end I am of the belief that building partnerships and learning the skills around that will pay off far more than the cashflow you'd get from getting to close on an investment by yourself and offset the cashflow you'd be losing out on by splitting it with a partner.

I am not super familiar with using an unsecured loan (so thank you for opening that idea up to me!) but I did find a BP post on the topic that was pretty informational:https://www.biggerpockets.com/...

The more tools in your toolbelt, the better.

Thanks for the article!
0 Reply
Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
3y
Quote from @Chad Blankenship:

As a new investor, I like others am looking for hard money lenders. I am finding deals but after one of 2, the 20% down will be tough. I have a great w-2 job and credit. Just looking for ways to get going and scale. Any advice is appreciated.

Hello Chad,
Does this property need any rehab work? If so, you can do 10% down on a fix and flip loan.
[email protected]818-269-7983
LuxePrivate Investments LLC 572 Reviews
Website View Page
1 Reply
Tayo Black
New to Real Estate · Northern VA · Member since 2022 · 32 posts · 15 votes
3y
Quote from @Erik Estrada:

Quote from @Chad Blankenship:

As a new investor, I like others am looking for hard money lenders. I am finding deals but after one of 2, the 20% down will be tough. I have a great w-2 job and credit. Just looking for ways to get going and scale. Any advice is appreciated.

Hello Chad,
Does this property need any rehab work? If so, you can do 10% down on a fix and flip loan.

Does it have to be a primary residence? @Erik Estrada
0 Reply
Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
3y
Quote from @Tayo Black:

Quote from @Erik Estrada:

Quote from @Chad Blankenship:

As a new investor, I like others am looking for hard money lenders. I am finding deals but after one of 2, the 20% down will be tough. I have a great w-2 job and credit. Just looking for ways to get going and scale. Any advice is appreciated.

Hello Chad,
Does this property need any rehab work? If so, you can do 10% down on a fix and flip loan.

Does it have to be a primary residence? @Erik Estrada

Nope. Non-owner occupied only
[email protected]818-269-7983
LuxePrivate Investments LLC 572 Reviews
Website View Page
1 Reply
Frank Perez
Member since 2021 · 2 posts · 0 votes
3y
Quote from @Eliott Elias:

Wholesale the deals you're finding until you are sitting on 20%.

Eliott, how does wholesaling work? I know here in Illinois you have to be a licensed broker to do it. Can you give an example or point me in the right direction?
0 Reply
Mark F.Pro Member
Rental Property Investor · Elgin, IL · Member since 2016 · 326 posts · 270 votes
3y
Hi @Chad Blankenship - I highly recommend Renovo Financial, they are my go to HML source and are local to the Chicagoland area. IMO they are top notch, looks like I've done about 35 loans with them for short term lending (HML) and many transitioned into refi on a 30 year product.
Feel free to DM if you'd like more and my contact persons information, they won't steer you wrong and are 100% legit, I've NEVER missing a closing date because of them.

Mark
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Chad Blankenship
OP
Member since 2022 · 3 posts · 2 votes
3y
Thanks for all the great advice. @Matthew Wilson, I read Raising Private Capital, Thank you for the recommendation. I learned a lot from that book.
1 Reply
Christopher Juntura
Member since 2022 · 32 posts · 6 votes
3y
Quote from @Chad Blankenship:

As a new investor, I like others am looking for hard money lenders. I am finding deals but after one of 2, the 20% down will be tough. I have a great w-2 job and credit. Just looking for ways to get going and scale. Any advice is appreciated.

I've come accustomed to running the numbers... really boils down to make sense of the numbers... 20% down can come from anywhere... your own equity, other peoples equity, seller finance etc... the key is action.
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