Updated over 2 years ago on . Most recent reply
First time investor looking for advice!
Hey everyone,
I'm looking to make my first investment into real estate this year and love the BRRRR strategy. To give a little background, I have about 6 months of historical W-2 income (just graduated from college in December) with little money saved up, and my partner has a nest egg of cash on hand but no steady historical income. That being said, neither of us can qualify for a loan from a traditional lender.
Do private lenders generally look at the investment opportunity more so than individual financial history? Also, when refinancing the home after the rehab and lease-up, will conventional lenders still refinance the property even though we would not qualify for a home purchase initially? If so, are there any stipulations that come with being in the situation that I described above?
Lastly, I would greatly appreciate any advice/stories from someone who has done used the BRRRR method to start out their real estate journey!
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
@Adam Tamer thanks for the post here. Any reason why you aren't trying to purchase your own primary home? And who is saying that you cannot qualify for a "traditional" loan? If you have stable, W2 income and your partner has the downpayment money then that's enough to qualify. If a lender is telling you that you do NOT qualify - then get a different lender. Unless, there's something else that I am missing?
Likewise, with "NON-traditional lending" - you qualify. In the non-traditional world experience is important so on your first deal they might lend you 70% rather than 75% or something like that but you certainly would qualify there too.
So, maybe we need to get in front of some other real estate investors? That is usually the right move in the beginning because other real estate investors in our area can tell us which lenders to use (and other vendors too). I did write a big post on how to find investor friendly lenders that you can find HERE.
Again, based on what you have said you should qualify. Hope all of that makes sense. Thanks!