11 Jun How Our Hard Money Loans Helped an Out-of-State Investor Grow Her St. Louis Rental Portfolio

A lot of real estate investors want to grow their rental portfolio, but they get stuck on one big problem:

They find the opportunity, but they do not have the financing ready to move quickly.

That is especially true for investors using the BRRRR strategy.

BRRRR stands for:

Buy. Rehab. Rent. Refinance. Repeat.

It is a popular strategy because, when done correctly, an investor can buy a property, improve it, place a tenant, refinance into longer-term financing, and then use that momentum to buy the next property.

But there is a catch.

To make BRRRR work, you usually need the right deal, the right financing, the right rehab plan, the right leasing plan, and the right property management team.

That is where Hermann London can help.

A Real Example: California Investor Buying in St. Louis

 

We recently worked with a client who lives in California but wants to build a large rental portfolio here in the St. Louis area.

She had the vision.

She wanted to buy rental properties, improve them, rent them out, refinance, and keep growing.

But because she was out of state, she needed a local team she could trust.

So here is how the process worked.

One of our Hermann London real estate agents helped her find a property to buy.

She used one of our hard money loans to help purchase the property.

She worked with one of our trusted vendors to complete the rehab.

Then one of our Hermann London agents helped find a tenant.

After the property was stabilized, she refinanced into a more traditional long-term loan.

Now Hermann London Property Management is managing the property for her.

That is the full circle.

Find the deal.

Fund the deal.

Fix the deal.

Lease the property.

Manage the property.

Then look for the next one.

Why Hard Money Can Help Investors Move Faster

Hard money is not the right fit for every investor or every deal.

But in the right situation, it can be a very useful tool.

Traditional financing can be slow, especially if the property needs work or does not qualify for a normal loan right away. Hard money can help investors move faster on opportunities that need to be purchased and improved before they are ready for long-term financing.

For investors trying to grow, speed matters.

If a good deal comes up and the investor cannot move, someone else may buy it.

Hard money can help bridge that gap.

It can give the investor a way to buy the property, complete the rehab, get the property rented, and then refinance once the property is stabilized.

Again, the numbers have to make sense. The property has to make sense. The investor has to understand the risk. But when the plan is clear, hard money can be a powerful tool.

The Advantage of Having the Whole Team Connected

One of the things that made this situation work well is that the investor was not trying to figure everything out alone from California.

She had local help.

She had a real estate agent helping her find the property.

She had access to hard money financing.

She had vendors who could help with the rehab.

She had leasing support.

She had a property management company ready to manage the property after it was rented.

That is a big deal.

A lot of investors underestimate how many moving parts there are in buying rental property, especially from out of state.

The deal itself is only one piece.

You also need to know:

• Who is finding the property?
• Who is funding the purchase?
• Who is managing the rehab?
• Who is placing the tenant?
• Who is collecting rent?
• Who is handling maintenance?
• Who is watching the asset after closing?

When those pieces are disconnected, things can get messy quickly.

When they are coordinated, the investor has a much better chance of moving from one property to the next.

Now She Is Ready for the Next Deal

The exciting part is that this investor now wants to buy another property.

And because we manage properties for a lot of owners, we sometimes hear about owners who may be thinking about selling.

That creates an opportunity.

Some of our property management clients may want to sell a rental property. Some of our investor clients may want to buy another rental property. Our goal is to help create those connections when it makes sense.

That is why we are building an investor list.

If you are interested in buying more rental properties in the St. Louis area, we would love to know.

If you are interested in selling one of your rental properties, we would love to know that too.

And if you are interested in hard money loans for your next investment property, let us know.

Want to Be Added to Our Investor List?

We are working on sending more rental property opportunities, off-market opportunities, and investor-focused updates to people who want to grow their portfolio.

If you want to be on that list, reach out and let us know.

And if you are looking for hard money financing, property management, leasing help, or a local team to help you grow your rental portfolio, Hermann London would be happy to talk.

Real estate investing is hard enough.

Having the right team around you makes it a lot easier.