Accelerated BRRRR Deal

[Tristan Mistkawi]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $110,000

This was my first deal that I've done. I found it off-market by cold calling. I bought it cash, and then a month later my wife bought it from me with a bank renovation loan. We are into the deal with a newly renovated house, no money out of pocket, and 50k+ worth of equity at the time of this posting.

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

I learned about the BRRRR method and wanted to buy my first property for free or low-money down. I thought of a way to buy a primary residence faster than the traditional BRRRR method. Instead of waiting 6 months to refinance, I had my wife just buy the property from me with a renovation loan immediately. It is a Fannie Mae loan product, called the homestyle renovation loan. We had a great experience with this. Please reach out to me and ask questions about it!

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

Off market, gave my best offer with the condition that it was in.

How did you finance this deal?

100% private money ---> homestyle renovation loan.

How did you add value to the deal?

Forced the appreciation with renovations

What was the outcome?

We are into the deal with a newly renovated house, no money out of pocket, and 50k+ worth of equity at the time of this posting.

Lessons learned? Challenges?

Do lots of due diligence on contractors when doing your first deal. Way more than you think you need to. Get several quotes. Make sure you have a contractor agreement in place and DO NOT pay any money up front!

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

Mike Banks with Opportunity Bank of Montana in Great Falls, MT has tons of knowledge as a lender and helped me a great deal by educating me about the renovation loan!