New to Real Estate · Member since 2025 · 4 posts · 2 votes
I'd like to learn from those who already made his first deal with the BRRRR strategy. How to find a lender? How much money to ask for? If I already have found an amazing deal...
I'd like to learn from those who already made his first deal with the BRRRR strategy. How to find a lender? How much money to ask for? If I already have found an amazing deal...
Hey @Carlos Ayala, welcome to the BP Forum! You'll probably have a lot of lenders respond to your post once you provide more details on the deal. What's the purchase price? How much rehab is involved and how long will it take to complete. What will the ARV be and how much will rents be with your first tenant(s)?
As for lending parameters, assuming your credit score is higher than 660, I would expect you'll see acquisition loans for up to 85% of the purchase price and the rehab loan of up to 100% of the rehab costs, but on a combined basis, the loans cannot exceed 75% of the ARV. Given your level of experience, your interest rate will probably be in the 10%-12% range.
First of all I'm truly sorry for the late reply, I've been learning more about the BRRRR method, which now I think is the best for me to start with, thus I've just understand you answer. Although I have to say that I've not research markets or properties, because I still have a lot of issues to deal with, such as get the equity from my first property, which I'm still paying mortgage.
I still need like 30K to pay the mortgage in full, in addition here I can't find a refinance loan to invest the capital.
As I said I'm still learning the BRRRR strategy to start as an investor, although I'm a Licenced RE Broker in my country. In that context let me ask you, do you know a way to find more capital to pay the mortgage in full?