Financing your rehabs with hard money lenders in Delaware County PA is a winning strategy for more rapidly building your real estate portfolio. Every real estate investor is looking to build their portfolio and generate the kind of cashflow that will allow them to live life on their terms. Tremendous real estate opportunities in Delco have allowed many investors to build up portfolios quickly.
We’re writing this article from the angle of real estate investors using the Buy-Rehab-Rent Out-Refinance-Repeat (BRRRR) Strategy, but of course it’s not the only strategy you need to use. Let’s look at the steps you can take to start adding Delco rental properties to your real estate portfolio.
Get to know Delco
Delaware County (a.k.a. “Delco”), southwest of Philadelphia, is Pennsylvania’s fifth most populous county with over 564,000 residents in Delco. It’s situated to give its residents easy access to Philadelphia and in the opposite direction Wilmington, Virginia. The county seat, Media, has an old-time trolley and an active theater which are both big tourist draws. There’s a lot more to Delco, but as a real estate you would want to research and network with other investors in the county to discover:
- What cash buyers are eager to buy
- What neighborhoods are within your price range
- What appreciation has been like over the last five years
- County property tax rates
- and much more!
Set your target and work backward
If your target is a portfolio of ten cashflowing rental properties in Delco, begin working backward to determine everything you must do to reach that target. For example, if your experience thus far suggests that you can acquire, rehab and flip a single family house in four to six months, it’s going to take you just over four years to rehab ten houses. Plus that may change if instead of flipping you’re now doing the BRRRR Strategy. If you want to hit your target it in less than four years, you’ll need to refine your systems of buying, rehabbing and renting in order to scale your business and get things happening more quickly. We’re just scratching the surface here, but hopefully you get the idea. A lot of analysis and planning is required if you want to build your real estate portfolio faster by working with hard money lenders in Delaware County PA.
Work the BRRRR Strategy
Real estate investors often rely on hard money loans for the Buy-Rehab-Rent Out phases of the BRRRR Strategy. After rehabbing and forcing appreciation, the next step is to Refinance the property and Repeat. Refinancing based on the new higher value generally allows the investor to pay off their hard money loan and recoup most of the money they invested in the project. When you get BRRRR running as a smooth system you’ll have the engine you need to add ten properties (or more) to your portfolio.
It is doable: You can build your real estate portfolio faster by working with hard money lenders in Delaware County PA.