Hitting a brick wall

[Lee Haenschen]

I could use some words of encouragement. For over 2 years, every moment I can steal away from family and my business, I look at homes to try and start my portfolio. Mainly looking for some to Brrrr at the moment. 

It seems that all homes in my price range (sub 100K) have low ARV's . And that once you do a light rehab you would not be able to take much equity out of the home. From using the BP calculators, most of the homes I have looked at - after the light re-hab & refinance, you would only be able to get half of the money you put in back out. Plus it would make the mortgage payment high enough with a commerial loan that you would only cash flow $50-80 per month. I have strong credit north of 750, I talked with two banks and because I am new they said I could expect my interest rate to be around 5.9% . With that high of an interest rate I have yet to find a deal that will cash-flow enough to take the risk.

[Mark Fries]

@Lee Haenschen

BRRRR is not going to work for your scenario.

You need to start thinking about looking for owner finance deals, do some door knocking, drive for dollars. Maybe the tax deed sale or sheriff sales...that type thing. Forget the BP calculators. You gotta start thinking completely outside of the box. The deal that you need is currently not listed for sale and nobody knows about it...you gotta go find it.