Lake Worth, FL · Member since 2017 · 45 posts · 7 votes
I am pursuing my first deal, I am thinking of doing a BRRRR but want to know what other ways I could finance the deal other than a conventional loan. What are some types of loans that can be used for buy and holds?
Thank you for your feedback guys!
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
We use private loans up front (8-9% interest only), that way we can finance the whole purchase and rehab (or most of it as it usually goes) and don't have to pay a bunch of loan fees. Then we get a long term bank loan once it has been rehabbed and rented.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
Conventional is unlikely to work because they don't loan money to rehab properties. Hard money lenders, Private lenders (friends, family, colleagues, etc....), home equity loans, 401k loans, all cam be ways to fund a deal, other than cash.
Lake Worth, FL · Member since 2017 · 45 posts · 7 votes
8y
@Jason D. Thank you for that, but now my question is, so I buy the property as if it was a flip, once it's rehabbed, get it appraised, and refinanced within the time frame of the first loan, and get a conventional or commercial loan on it? and when do I get the tenant in the property, once I refi or once I finish rehabbing?
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
We use private loans up front (8-9% interest only), that way we can finance the whole purchase and rehab (or most of it as it usually goes) and don't have to pay a bunch of loan fees. Then we get a long term bank loan once it has been rehabbed and rented.