On the road to first BRRRR through HML

[Account Closed]

Investment Info:

Small multi-family (2-4 units) hard money loan investment.

Purchase price: $150,000
Cash invested: $100,000

Fourplex obtained with HML and self-fund for closing costs. Expect to complete rehab by 1st week of December. Using first of the 1/1 as 'model' for construction team to mimic on the other three. Had some delays with demo as the seller renewed to a one-year lease with remaining tenant but was able to move him out by returning his deposit and rent. Once first is complete, list it for rent on AirBnB (fully furnished).

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

Training through BP webinar as well as training with Armando Montelongo's NTLT on how to evaluate deals and construction costs.

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

Drive by in Amarillo.

How did you finance this deal?

Used Backflip as hard money lender and self-funded the closing costs.

Lessons learned? Challenges?

Use a clause within the contract to request for landlord to not renew leases during the contract period. Negotiate closing costs into the deal. Ensure HML numbers are correct and better communication to avoid closing delays.

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

Keller Williams - Santana Johnson