BRRRR questions first timer

5 Replies

some rookie questions ahead, hopefully others will benefit from the answers. 

What’s the best way to find a hard money loan, private finance, etc?  Ideally enough for purchase & rehab

How to determine reliable rental rate?

Once refinanced, is 75/80 loan-to-value fairly common?

@Joseph Norton most hard money lenders will want you to put a decent amount of money down. I normally am seeing 20-30% down on these types of deals. They will also want to see some liquidity and decent credit, etc. I think the common misconception is that hard money will give you a 100% loan, and if you are new to the game that is pretty much never going to happen. 

@Joseph Norton the rest of my post got cut off! For rental rates, check in with your local real estate broker and have them pull comps. 

For LTV we need more info. What type of property are you re-financing? SFR? Multi? Commercial?

@Joseph Norton Hard Money Lenders require some money down. Depending on experience they  can do 75%-85% of purchase price and 75%-85% of construction cost. Some of them are OK with low credit as long as their is not recent delinquencies and you have an explanation. You can find some in the directory. 

@Joseph Norton

Regarding rental research.....  

#1 - look at existing listings before purchase and best you can come up with a range

#2 - post ads of your property at various rent amounts as you are working on it and get market feedback.

That's about all you can do, there.  When buying, be conservative and don't assume things.