My strategy in this deal was to buy a house using someone else’s money, fix it up, rent it out, and then refinance it into a long-term loan. If you do it right, you should gain a lot of value during the rehab stage which allows the bank to provide a loan which covers the short-term loan.
This is commonly called the BRRRR strategy and my wife and I were interested in this method ever since we started learning about real estate investing in 2018. Since we haven’t had much experience buying Real Estate without any of our own money, the challenge was finding someone willing to provide a short term loan that would cover the purchase and rehab. When Rebuilt found the deal, I knew it would be a great start for us. I showed the opportunity to my cousin who was interested in funding the deal for equity, and then we got to work on the rehab. Our rockstar contractor knocked the rehab out in under 5 weeks.
Like most construction projects, we went a little over budget so we were left with about $5,000 that we had to spend out of pocket. However, since the entire property has been rehabbed and all of the big ticket expenses have been taken care of at the front end, our expenses will be minimal go forward. We should have a great tenant in place shortly and will receive steady cash flow for the years to come. We are already getting started in another deal and look forward to working with Rebuilt Investments again in the future!
Success Story 1rebuiltinvestments2019-11-22T13:48:02-05:00