I am a noob and got interested in doing BRRRR. I'm going to fund my first BRRRR somewhere in the midwest region with a conventional loan (which is a bit weird but I couldn't find a better option) but figured that's not going to be very fast or sustainable due to the longer seasoning period and the fact that my money will be tied to the property for an extended period of time. I also looked at hard money but that's not very affordable and requires a deposit which totally bashes the point of doing BRRRR. And it's challenging for me to find private lenders. Is there a way out? Curious what other investors are doing in such a challenging environment.
Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
3y
The BRRRR strategy can be difficult on the first "B". That's because these are typically distressed properties and many may not qualify for conventional financing.
Most do it with cash or hard money lenders.
It's very hard to get into a property for truly $0 down. Your best bet might be to look into investing local with an FHA loan if funds are tight.
It's great to hear about your interest in pursuing the BRRRR strategy in the Midwest region – it's a fantastic approach to building wealth through real estate. While I understand your concerns about conventional loans, longer seasoning periods, and the challenges posed by hard money lenders, there may be solutions we can develop.
What percent of down payment are you looking to make?
We specialize in catering to the needs of investors like yourself who are looking to maximize the potential of their BRRRR projects without being hindered by traditional lending constraints. Please feel free to reach out if you would like us to take a look at a specific property with you.
Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
3y
The BRRRR strategy can be difficult on the first "B". That's because these are typically distressed properties and many may not qualify for conventional financing.
Most do it with cash or hard money lenders.
It's very hard to get into a property for truly $0 down. Your best bet might be to look into investing local with an FHA loan if funds are tight.