Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
Hi All,
I am looking for ideas of what other investors recommend doing while waiting to pull their cash out of a BRRRR?
I have been thinking of asking for a Line of Credit or personal loan to purchase another property in the next few months while I wait but I was curious as to what others have done. Also, any recommendations for any lenders for the Line of Credit / Personal Loan?
Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
7y
We haven't finished the repairs yet. It's a 203k rehab which should be done by end of June but I have leads for some properties and I want to get in front of the lack of Funds
Ypsilanti, MI · Member since 2018 · 189 posts · 127 votes
7y
@Cody Z. ah, gotcha. 203k's are great, but not for quick turn around unfortunately. In my opinion, trying to get a line of credit on a property that's in the middle of rehab I think would be pretty complicated and not worth the time for the amount you would be granted (if you were granted something). I'm in the rehab phase of my BRRRR right now, I'm looking at the next property with a partner while my money is tied up in these repairs. Plus, buying with other peoples money is always better than using my own :)
Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
7y
Matt I agree on using OPM! I'd love to hear more about your deal if you're willing to share the details.
RE: my initial post, I'm looking to get a line of credit / personal line separate from the rehab in I'm currently working on. Same as you, I want to keep deals in the pipeline and keep the momentum I've got going!
Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
7y
@Cody Z. I work for another podcast (we love BP too!) we recently had a business credit expert on that helps REI's get business credit. I can't share the link here, but I can if you want to message me.
I am looking for ideas of what other investors recommend doing while waiting to pull their cash out of a BRRRR?
I have been thinking of asking for a Line of Credit or personal loan to purchase another property in the next few months while I wait but I was curious as to what others have done. Also, any recommendations for any lenders for the Line of Credit / Personal Loan?
Thanks in advance!
HI Cody,
A good strategies to implement:
- business lines of credit because utilization up to your credit limits on these assuming they dont also report to personal trans/equi/exp bureaus will not affect your personal fico scores
- obtain personal lines of credit and credit cards with no cash advance fee's too despite them possibly affecting your ficos because these can be the last line of defense if you really need quick capital
- on each BRRR you do, try to get lines of credit on the newly created equity post rehab so you in your wake of BRRR deals you have more and more equity access to your properties fund subsequent deals in the future
- a more advanced strategy is to utilize commercial blank lines of credit as they are larger and more efficient and can tie up multiple trust deed attachements and properties into one CLOC to use as opposed to have many small LOC's on each property
- keep your DTI debt to income ratios low, keep your DSCR or global DSCR high (total cashflow over your total personal and business liabilites at 1.25X+) so that you're always bankable
- work on personal ficos and personal credit as well just so you have flexibility to obtain capital/financing on either business or personal sides
Hope that helps but that will set you free above if maintain within a comprehensive investing strategy
I am looking for ideas of what other investors recommend doing while waiting to pull their cash out of a BRRRR?
I have been thinking of asking for a Line of Credit or personal loan to purchase another property in the next few months while I wait but I was curious as to what others have done. Also, any recommendations for any lenders for the Line of Credit / Personal Loan?
Thanks in advance!
HI Cody,
A good strategies to implement:
- business lines of credit because utilization up to your credit limits on these assuming they dont also report to personal trans/equi/exp bureaus will not affect your personal fico scores
- obtain personal lines of credit and credit cards with no cash advance fee's too despite them possibly affecting your ficos because these can be the last line of defense if you really need quick capital
- on each BRRR you do, try to get lines of credit on the newly created equity post rehab so you in your wake of BRRR deals you have more and more equity access to your properties fund subsequent deals in the future
- a more advanced strategy is to utilize commercial blank lines of credit as they are larger and more efficient and can tie up multiple trust deed attachements and properties into one CLOC to use as opposed to have many small LOC's on each property
- keep your DTI debt to income ratios low, keep your DSCR or global DSCR high (total cashflow over your total personal and business liabilites at 1.25X+) so that you're always bankable
- work on personal ficos and personal credit as well just so you have flexibility to obtain capital/financing on either business or personal sides
Hope that helps but that will set you free above if maintain within a comprehensive investing strategy
Best,
Albert,
Thank you for this post - Fantastic amounts of value here!