First BRRRR Complete!

[Griffin Malcolm]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $75,000
Cash invested: $37,000
Sale price: $173,000

My first BRRRR. Off-market purchase. Used hard money 90% PP / 100% Construction Costs. Mostly paint and carpet plus all new kitchen and a little electrical work. Refi at 90% LTV new mortgage of 155k, payoff of 105k to hard money, so I was able to walk away with 50k in this one. I intend to roll the money into the next deal and then 1031 out of the property into something else next year

What made you interested in investing in this type of deal?

All the reading and listening I've done seemed to point at BRRRRs as the best way to recycle your money and start your journey in real estate

How did you find this deal and how did you negotiate it?

My agent presented me with this off-market property. It belonged to an elderly woman who passed away and the estate wanted the property sold quickly. There wasn't any negotiation really; we made an offer and they accepted

How did you finance this deal?

Hard money. 90% purchase price and 100% of the rehab. I put down $7500 and then after fees, commission, other holding costs, I had about 25k into the deal in the end.

How did you add value to the deal?

Trash removal, fresh interior and exterior paint, carpet and plank inside, brand new kitchen with cabinets and granite countertops, replaced the deck, and some updated electrical work w fixtures

What was the outcome?

Came out great! All-in for about 105k and we appraised for 173k. New mortgage of 155k after the refi left me with close to 50k to use for the next project

Lessons learned? Challenges?

- Don't bring appliances over without measuring the doorway first. I did this with a fridge that wouldn't fit so I ended up reselling on Facebook
- Don't be a hero and try to do parts of the job the GC can do. I said I would handle the dumpster company, and my GC said I overpaid on it. If i left it to him I would've saved money
- Make sure to start the energy bill before people start working on this. I didn't and we lost a couple days of time

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Spark Lending and Community Bank as lenders
Jamie Brayton is great to work with and found this property for me