Hard money/BRRR Strategy

2 Replies

A friend of mine and I are thinking about doing The BRRR Strategy for the first time. For those of you you have done this strategy with hard money loans, what are some things you wished you knew before starting?

@Kyle Hoppman I have to second @Cameron Tope here in that we underestimated the holding costs in our first BRRRR. Don't forget about the little things like the appraisal/utilities/etc. If it's your first rehab expect it to go much longer than you think and budget in a fudge factor because the rehab will very likely cost more than you think.

Real estate is extremely forgiving if you buy right so focus on getting a good deal and these other problems become less of a concern.