Getting Into REI Via BRRR Questions

In the process of closing our first rental property via conventional financing. After this purchase, we will be low on reserves but want to continue adding to the portfolio. With this in mind, I have been drawn to the BRRRR strategy.

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I understand the basics I believe. Find a property that would fit the 70% numbers, get private money to buy and rehab, rent it, and get it refinanced.

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Any tips when getting private money lending? I'm not getting bombarded with ads for private lending etc. I'm totally unfamiliar in this space. Any terms or things to be wary of or to avoid? What makes a private lender good or bad?

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My fear outside of getting a bad private money deal, is getting stuck in the refinance. Any tips on avoiding this? Do you set up the refinance prior to the purchase? Are you using conventional loans to refinance (RocketMortgage, LenderFi, etc)?

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Any tips or insights would be greatly appreciated.

Posted Jun 4, 2019, 3:03 PM UTC

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