Most people think you need 20 percent down and perfect financials to buy a rental property, but that is not always the case.
In this video, I show you how to use a hard money loan to buy and renovate a rental property with little to none of your own money using the BRRRR strategy.
I walk through why banks will not lend on properties that need work, how hard money lenders fill that gap by lending on after-repair value, and the exact steps to buy, renovate, rent, and refinance into a long-term 30-year fixed loan.
I also explain how tenant income helps you qualify for refinancing, why this strategy saves you thousands in taxes compared to a flip through unrealized gains and depreciation, and the four ways rental properties build wealth over time.
===================================== Timestamps: 00:00 Intro 00:07 Why Funding Rentals Is So Difficult 00:32 The BRRRR Strategy 00:54 Step 1: Get a Hard Money Lender to Fund the Purchase 01:23 Why Banks Won't Lend on Properties That Need Work 01:38 FHA Inspection Requirements Most People Don't Know 01:59 Why Distressed Properties Are the Best Deals 02:19 Hard Money Lenders Lend on After-Repair Value 02:31 Step 2: Fix Up the Property and Place a Tenant 02:40 Step 3: How the Bank Appraises the Improved Property 02:52 How Rental Income Helps You Qualify for Refinancing 03:19 Get Pre-Approved With Your Takeout Lender First 03:48 Why BRRRR Is Perfect for Investors Without Much Capital 03:55 Tax Advantage: Unrealized Gains and Depreciation 04:36 Four Ways Rental Properties Build Long-Term Wealth 05:07 Rising Rents, Appreciation, Loan Paydown, and Tax Benefits 05:28 How I Help Investors Set Up Hard Money to Long-Term Loans
===================================== Disclaimer
Some names and specific details in this video have been changed or are composite examples created for educational purposes. Individual results vary based on market conditions, experience, deal quality, and other factors. Past performance does not guarantee future results. This content is for educational purposes only and should not be considered financial or investment advice.
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By: Ryan G. Wright - The Investor's Edge Title: How To Use Hard Money to Buy Rental Properties? Sourced From: www.youtube.com/watch?v=DNUyl_ayoN8
