One thing I’ve noticed is that finding a good deal isn’t always the biggest challenge for real estate investors. Sometimes it’s having enough available capital to take advantage of the next opportunity.
You might have one property under renovation, contractors waiting to be paid, and holding costs adding up. Then another solid deal comes along.
The question becomes: Can you take on that second project without putting your first one at risk?
This is where having access to additional business funding, whether through a business line of credit, 0% APR business credit cards, or other financing options, can make a difference.
It’s not about borrowing as much money as possible. It’s about having the right capital available when opportunities present themselves.
For those of you who have gone from flipping one property at a time to managing multiple projects, what was your biggest challenge?
Was it finding deals, managing contractors, or having enough available capital?
I'll give you the honest version: I never did a second flip because I stopped doing the first one. On a flip, every dollar of profit depends on you being right about the ARV, the rehab budget, and the timeline all at once. When I hold and BRRRR instead, the same house pays me for 30 years. I buy under $100K, put $30-40K into the rehab, and the Section 8 rent on a 3BR+ covers the payment with room to spare. So my answer to your question is none of the above. It wasn't finding deals, contractors, or capital that stopped me. It was doing the math on one flip versus one hold and realizing the flip was the worse trade.
James, that’s an interesting perspective, and I can definitely see your reasoning. Flipping can generate a nice lump sum, but holding onto a property that produces consistent rental income while building equity can create long-term wealth.
I also like your approach to buying below $100K and keeping renovation costs under control. Being in the business funding industry, I come across investors who are focused on getting enough capital for their next flip, but sometimes the bigger opportunity is having access to funding that allows them to build and hold a portfolio.
With options like business lines of credit, 0% APR business credit cards, and revenue-based funding for qualified businesses, there are different ways to approach working capital depending on the investor's situation.
I'm curious, since switching to the BRRRR strategy, have you found it easier to secure funding for additional properties, or is accessing capital still one of the bigger challenges when trying to scale?