Is it a good idea and take Personal Loan and Start BRRRR?

Question

Hello everyone, Over the past many months I have gained knowledge about BRRRR through the bigger pockets podcasts, BRRRR by David Greene, and other books by Brandon. Even though I have the knowledge, I do not have any money to start

I would like to do my 1st BRRR in Houston, TX, and thinking of moving to the house (in which I will do the BRRRR) myself.

Do you guys think it is a good idea to take a personal loan and begin my Journey? I am unsure, hence asking for guidance.

Here are the hypothetical numbers of my calculations if I proceed with a personal loan. I talked to Groundfloor (Hard money lenders) and they are willing to lend 80 % of (purchase+rehab) costThank you, Everyone,

Rita

Cristian Vences · Answer

Would highly recommend watching this!

Keep in mind that you might not be able to qualify for a favorable interest rate with a huge personal loan! But that won't stop you from getting a refinance. Talk to a refinance lender prior to moving forward

Eliott Elias · Answer

The BRRRR method could be a very powerful strategy. But it is flawed in that it depends so heavily on the appraisal. To be safe I feel like you would need to purchase the property at around 65% LTV to be confident the loan the bank gives you at 75% covers what you put in to it. Which brings me to my next point, it's pretty rare to come across a deal 65% all in. Might as well be a flipper without the headache of dealing with the bank. Just my 2 cents

Rita Samaddar · Answer

Hello Cristian, I did watch this video as part of my learning. Would it be possible for you to network me with a local credit union?

Rita Samaddar · Answer

Thank you, Eliott! Your advice is helpful

Is it a good idea and take Personal Loan and Start BRRRR?

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