How do you fund your next deal when your capital is tied up until refinance?
Hey everyone,
I'm looking for advice from investors who hit the scaling wall early on.I'm on my third BRRRR and running into a timing issue with capital that I'm sure others here have dealt with.
Here’s my situation:
All-in on my current BRRRR: $260,000
Expected ARV: $325,000
A 75% LTV refi will return about $243,000, so I'll still have around $17,000 tied up
I’m not expecting (or looking for) a perfect 100% cash-out. I fully expect to leave some money in deals which I’m comfortable leaving $20K–$30K in a house if the long-term numbers make sense (which my current 2 do). However my challenge is that I am not able to refinance until April/May, but I want to acquire my next property around February
For context, I funded my first two BRRRRs by raising money from family, but I’d like to avoid going back to the same group unless absolutely necessary. My question to the community: How did you fund your next acquisition when your cash was temporarily tied up in a BRRRR and you were waiting on the refinance?
Curious what has worked for others in this position: Short-term private lenders to bridge 2–3 months, Hard money lenders that require very little cash to close, Using existing equity as cross-collateral, Business/personal lines of credit, Or simply waiting until the refi is done before buying again
I am trying to keep momentum and stay on pace for 2–3 homes per year, without overextending. I would appreciate hearing from investors who’ve been through this exact bottleneck.
Thanks in advance!