Financing for BRRRRs

[Archie Chambers]

Hi everyone, my name is Archie. Im new to REI and I have many questions and super excited to begin this new journey. I was looking for advice on how to fund a property using the BRRRR method? I have 40k in a 401k. To avoid penalties and taxes i was thinking of the BRRRR method or joint venture. Any advice on the topic would be greatly appreciated. Thanks.

[Mike Klarman]

Any newbie with credit 725+ we offer 90% of the purchase depending on the area.  Obviously not going to give 90% in a c-/D+ area.  But in Bs and up for sure.  I've helped many people get started and this is what I tell them.  You are coming light on the experience, so you gotta come heavy with the credit and liquidity.

Now, you can have a jv with a friend/family/investor as long as you season the money into your LLC account, I even know some places that won't ask for seasoning.

But my starter deals for my clients, I put them into structures like:

Purchase 50k - 90k

Rehabs 30k - 70k

ARVs 150k - 250k

B or better neighborhoods.  Working class neighborhoods with good schools.  Between the Ohio Valley and The Rocky Mountains you find pockets that offer up such deals.  I'm in two markets right now and am expanding.

We are making an offer today on a house:

50k purchase

47k rehab

149k ARV

close to close 3 months.  I am giving this to a BPer, first timer, I'm helping him break in.  In three months he'll net 25K and move on to the next.