Flipper/Rehabber · Toms River, NJ · Member since 2014 · 378 posts · 154 votes
This is just a random idea I had the other day but in theory, would it be possible to use the BRRR method to buy multi-family properties with privately raised investor capital and then pay them back directly after the refinance, paying them interest on their investment with rental income in the meantime. I'm sure I'm not the first person to ever have this idea but does anyone have any experience doing it? I have very little capital of my own but know many people looking into invest and I'm trying to break my way into the multi-family game; figured this might be a good place to start. Any feedback is very much appreciated.
That's very interesting...are you ever able to include rehab costs into that borrowed money as well? I'm thinking if it was a good enough deal, maybe you could make back the acquisition AND rehab costs in the refinance. Is that too much of a stretch?
That's very interesting...are you ever able to include rehab costs into that borrowed money as well? I'm thinking if it was a good enough deal, maybe you could make back the acquisition AND rehab costs in the refinance. Is that too much of a stretch?
I'm sure you could, but I hate the process and all the inspections and escrows. I'd rather just use my own capital to simplify and speed up the process.
Flipper/Rehabber · Toms River, NJ · Member since 2014 · 378 posts · 154 votes
10y
I'm still hoping to get some more feedback. I'm sure there are people out there doing this, I'm just still trying to fully understand the in's and out's a little more. How do you start? What are the pro's and cons? I wonder if @Brandon Turnerhas ever done something like this?