All Forum Posts by: Willie James

If I were you I'd maximize my conventional loans. Those have the best rates. After that I'd look for an asset based lender. Regardless, you're going to have to come up with down payments, depending on your risk tolerance and credit score you could go with business credit or save up. Those are the main ways people execute the BRRRR strategy.

Wow what value. @ Tuck Cummings, thanks so much for sharing! 

Brett, that make sense. If the borrower's credit score is high enough, generally over 720, those stacking companies can get you business cards. Lower than that and they get you personal cards. Personal cards do report to you personal credit. Most business cards do not report to your personal credit (capital one and discover do though).

But of course rule number one of investment is don't lose money. Mitigating risk is paramount. Might be pretty hard to borrow money from a bank or corporate lender without a personal guarantee though. Maybe a private individual would do it if the deal was good enough and/or the borrower had a good enough track record.

What are the cons of the business credit model? If properties are too expensive in your area, why not invest out of state? 

What would be the purpose of your bank account? Transferwise, Brex, Revolut, they all work the same. The partner with banks in the US but do not directly provide bank accounts to customers. If you just need to accept ACH payments those services can help. 

I would suggest finding somewhere where the numbers work for you and build a team there. Also don't let the amount of capital you have tempt you to deviate from the underwriting criteria you have. You didn't say what kind of property you are looking for or where. That might elicit more answers as well. 

Someone who enters into an investment with you as an equity partner receives a percentage of the profit (you mentioned 50/50). You as the operating partner are responsible for the management of the property: finding tenants, maintenance, overseeing and organizing the financials, etc. The money partner benefits by not doing any of those things themselves. 

That's different than a lender-borrower relationship. A lender will provide money at interest to the borrower who is  responsible for managing the property but also has all of the benefits of ownership, i.e. full share of the rental and sale profits minus the cost of financing. 

Hey Revis. Generally speaking an asset based lender (hard money lender) is going to have a higher interest rate and easier terms to qualify. A conventional loan will get you a better interest rate, but have stricter requirements with regard to credit score, debt to income, down payment.

Just my opinion, but if it's your first property, reach out to mortgage brokers in your area. A good one should be able to get you a good rate for a conventional rental loan. As far as I know, your not owning a personal property should not preclude borrowing a conventional rental loan.