Hello, I am 23 years old and I am looking into investing in my first real estate property in California. I want to use the brrrr method. But the only thing is that I don’t have the money to rehab. Is there anyway I can still use the brrrr method without having cash to rehab?
You would need to get the money from somewhere. Private money, line of credit, hard money lender, credit card, etc. You have to add value to the property in some way. Usually by renovating it.
@Nicholas Bohorquez You likely will need to borrow or find an investor.
Does this mean you have the money to purchase? Many Hard Money Lenders who lend in your state will also be interested to fund 100% of the rehab portion of your rehabbing project. But in draws, in arrears once you have finished rehabbing each stage.
So you will likely need to have money on hand for at least the first draw plus extra for cost overruns and emergencies.
How are you funding the purchase itself? Or did you mean you don't have any capital at all and are asking how to purchase and rehab without any money down?
@Nicholas Bohorquez If you plan to occupy the property for at least 12 months, you can finance renovations with a 203k or Fannie Mae Homestyle renovation loan. This could work particularly well with a multi family if you live in one of the units for a period of time. These options are approximately 3% down.
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