Beginner Investor looking for advice
Hi,
My name is Simony Antunes and I am a rookie investor planning on buying my first property. I just completed my first-time homebuyer course and I've been educating myself on real estate. I have some money saved and I have good credit. Now I am trying to figure out what my next step should be.
Is it a good idea to buy my first property using the BRRRR strategy?
Is it a good idea to use a hard money lender? I keep hearing that it's a dangerous game and that you need thousands of dollars before getting a loan from a hard money lender.
How much money should I have saved?
Most Popular Reply
Hi @Simony Antunes, your first question will depend on a few things. Are you looking to be more active or passive? Would you rather learn by doing or research all your processes upfront? Where do you plan to buy and how much would it cost?
For example, I got started house-hacking which was more active but allowed me quicker hands on experience as it was mostly about acquisition and property management. My market was also expensive and I needed a place to live anyways so a house-hack worked well. Some folks will go all out and start with OOS BRRRRs which is a lot more research upfront, but is eventually (hopefully) more passive as you build systems for every step of the process. It also frees you to buy anywhere and at a price point that works with you.
When I first got started doing BRRRRs out of state, it really felt like a second job. I didn't have too many other commitments and really wanted to figure it out so it was still an enjoyable process. I would evaluate the different investing and financing strategies to see what suits your situation. If an approach sounds too overwhelming, you can consider starting with something more simple and then building up from there (e.g. 25% down on a mostly rent-ready property instead of a full BRRRR).