Real Estate Investing/Development

Sunalmighty

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GollyImGully

Keep your five mics nikka, give me the 'caine
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For someone who does not want to use their own cash or does not have enough liquid to purchase a flip and put money into the rehab - is getting a hard money loan or a loan from a private money lender the only option? which makes more sense? anyone with any experience there?

I been researching and I rather use OPM than my own. The idea (and im assuming this is what most people do) is this...

1. Purchase property that needs work for a lower price than other comps in the area (let say 100k)
2. Get a hard money loan to cover the cost of the property plus the rehab cost (120k for example)
3. Fix up the property and then refinance
4. At this point you can either sell and take profit (refinanced for lets say $150k you would then take home $30k) or hold the property and get tenants and pay off the loan from the rent coming in

Anyone with any insight?
 
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For someone who does not want to use their own cash or does not have enough liquid to purchase a flip and put money into the rehab - is getting a hard money loan or a loan from a private money lender the only option? which makes more sense? anyone with any experience there?

I been researching and I rather use OPM than my own. The idea (and im assuming this is what most people do) is this...

1. Purchase property that needs work for a lower price than other comps in the area (let say 100k)
2. Get a hard money loan to cover the cost of the property plus the rehab cost (120k for example)
3. Fix up the property and then refinance
4. At this point you can either sell and take profit (refinanced for lets say $150k you would then take home $30k) or hold the property and get tenants and pay off the loan from the rent coming in

Anyone with any insight?

it’s called the BRRRR method.

buy renovate rent refi repeat

easiest way to build your portfolio
 

Mufasa Ahadi

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bout to go multifamily as well

From my understanding you can house hack and live in one half of a duplex and only do 3.5% down. The house we own now we can probably rent and make at least 500-600 per month as well

Same. I was about to do the condo + multi route, but buying 2 multi’s is the better option. Unless the condo is a good flip.
 

South Paw

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Same. I was about to do the condo + multi route, but buying 2 multi’s is the better option. Unless the condo is a good flip.
Yeah we got 200 - 300k equity in our current home so doing a multi at a time seems like the best

I'm just worried about getting renters in quickly if I got multiple multis
 

Mufasa Ahadi

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Yeah we got 200 - 300k equity in our current home so doing a multi at a time seems like the best

I'm just worried about getting renters in quickly if I got multiple multis

Nice. I think if the renters are on some sort of section 8 or rental assistance you will always receive guaranteed money.
 
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