BRRRR Method/Hard Money Lender

12 Replies

I am trying to get into real estate investing. I was recently exposed to the BRRRR Method and I am currently shopping around for lenders. I have some money I would like to use to start, but not a significant amount. Do you have any suggestions for lenders, consultants, or realtors in the Philadelphia area.

If you’ve ever went through the process, can you share your experience?

Feel free to DM me as well!

i am a former accountant.  I think think the best way is to first educate yourself using courses, books or the everything BiggerPockets has to offer.  It will provide you with a good game plan.

It's awesome you're taking steps towards getting your first BRRRR deal! I was in that boat last year and wrote down every HML I could find and called every one of them... Unfortunately I quickly learned that it's really tough to get started when you don't have any experience. Last year, during COVID, nobody would lend to me since I didn't have any experience. I had to save up my own funds in order to BRRRR my first property on my own without lenders. Certainly tough, but it got it done.

If you're not in a position where you can save up your own funds, your best bet might be to just put yourself out there in the RE community to see if anybody would be willing to partner with you. In exchange, do the grunt work that nobody else wants to do. Don't ask for equity in the deal, just take it on as a learning experience. Then once you've done that a few times, you can take your experience and the connections you've built during that time to a hard money lender and they might be more willing to lend to you. 

@Irfan Raza

Hi Irfan, thank you for sharing. After being in accounting for some time, we probably have similar interest in leaving Corporate America and investing. I would love to hear more about your experience with Realestate investing.

@Tucker Cummings

Hi Tucker, thank you for sharing your experience with me. I’ve been taking the same approach as well reaching out and researching lenders, but yes they have all been telling me the same thing. I’ll either need more money to put down or to have experience to be 100% funded. I noticed you mentioned that you had to save up your own money, so did you find the entire deal yourself?

I haven’t tried that approach yet, but that is a great idea. So throughout these deals will I be undergoing as a mentee to someone?

@Marlia Stone , Yes I funded the entire first deal myself. I bought it for 77k, put 15k of work into it, then it appraised for 124k, and I got a HELOC for 80% ARV and pulled out 99k, so profited 7k off the bat. Once I had that happen, some people on BP noticed, family & friends saw what I did too and now I have people helping me fund deals as private lenders. Already doing 3 deals in 2021!

For the second point, yes, you're taking on the role of a mentee/intern. Go into knowing that you're doing the grunt work but getting an education and building relationships. After a year or so, you'll hopefully have more money saved up for investing as well as a team that can help you get the deal done.

Hi @Marlia Stone give Brian at Rehab Financial Group a call. I have done a lot of work with them over the last few years, both on the borrower side and now the contractor side. I'm not positive what their appetite is for new investors at the moment but worth a call. 

Let me know if I can help with anything else! 

@Tucker Cummings okay nice! I haven’t got to the point of saving up that much but maybe give it a few months and I may. Thank you for sharing that. I think getting the first deal is always the hardest.

Okay glad that you said that. I have someone that has offered to answer any questions that I may have about the process but I didn’t think to ask about allowing me to walk through the process with me. Thanks!

I have done about 6-7 deals with them (can't remember the number off the top of my head). I would be happy to discuss their process with you. Send me a DM with your availability and we can connect. 

Hi Marlia,

Here are some additional places that you can look to find lenders that may be able to help assist you (forgive me if you've already tried some or all of these);

- The ‘Network’ tab on BiggerPockets has a hard money lenders tab, and you can search by state.

- Local meetups

- Speaking with local realtors

- Speaking with title companies

Speaking with investors who focus on properties in your area can be particularly helpful. If they've had a good experience with a lender, then chances are you are setting yourself up for success down the road.

Lastly, online search/databases - Simply by searching online you can find a number of quality reputable national lenders. If you want to get more specific, then you can type in your location, e.g. 'Philadelphia' along with your hard money lender search query. 'Philadelphia hard money lender' would be a reasonable starting point.



@Michael Kinsella

Hi Michael, thank you for reaching out with this valuable information. Some tasks I have used and some I have not. There’s about 5 lenders on here but many do not do 100% financing.

Have you worked with a HML before? If so who did you go through and how was your experience?