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Updated about 8 years ago on . Most recent reply
Need advice completing the "Refinance" of BRRRR
For over a year now I have been reading the blogs, watching podcast and of course reading several books on REI. I work full time in a pressure cooker environment, (can't wait to get financial freedom/stressed out my mind) BUT I'm so excited and dedicated to using every chance I get to dig deeper into REI education. I watched the replay yesterday of Brandon's podcast on Rental Property, and as I plan my BRRRR strategy, I can't seem to get a consistent answer with a few questions.
1. Can someone tell me when I do the "R" for "refinancing"in BRRRR, do I have to still remain employed with a W2's job qualify? (I want to leave my full-time W2 job, and do my LLC self-employment business P/T, and start Doing Flips Full-time)
2. Can I buy a below market cash deal (private lender money) in my LLC name, Fix It, put up for sale, then buy it back at retail price, bank financed, using FHA in my personal name? Is that legal? In this case I would be buying the home for me and my elderly mom who is on very low fixed income. So I would keep any profit after paying off all holding cost including private lender. Don't want to wait 6 months to Refi..want to quite my job right after qualifying to buy home, use profit to move on to the next flip.
Btw I have a private lenders ready (OPM). Just don't want to overlook those steps.
Any help would be appreciated. I have read and asked and I'm getting inconsistent answers. I'm ready to do what it takes to get my RE business going I just want to know about the refi before I jump ship with this stressful job!
Most Popular Reply
Most people dont quit their job and start flipping homes. That is what happens on TV.
Keep your job and flip a house, then you have 20k or 30k to do some marketing and you are able to get another one under contract. Flip that one. If you can make money on both those deals, then you are probably almost ready. AFTER you have been able to market and find deals consistently, then you will have the momentum to quit your job.