#34 purchased today in Redford, Michigan

[George P.]

Just closed on #34 forty five mins ago. it's in (South) Redford, michigan. surrounded by Livonia, Westland, Garden City, Westland.

it's a beautiful brick ranch, over 1100 sq ft, with a 2 car and a basement. BUT it has only 2 bedrooms. one of them is HUGE.

kitchen is done very nicely (and i am super picky), some code violations and that's it..

should be ready for the market in 2 weeks, after we do a kitchen for another investor in the area.

repairs are MINIMAL, should rent for over $1K. 

[George P.]

Originally posted by @Brian Turek:

Hi George,

Congrats!  New BP member here.  Excited to buy and hold in the near future and build a business similar to yours.  Are you using the Brrr technique?  One question I cannot seem to figure out is related to the big picture financing.  Here is my question:

How are you able to buy multiple properties a year using the Brrr technique and continue to get lending on the refinance each time?  (Refinancing the loan to remove private lender and put property in your name)  Wouldn't you be adding more and more debt each property (which would factor into your next refi) and then you would not be able to use the cash flow from these properties for a year or two?  Does your lender on the last refi step allow you to use your recently added cashflow for your next deal?

PLEASE ANYONE FEEL FREE TO COMMENT!

Thanks for any feedback!

 once you get comfotable with the concept you will understand that the only way to do the brrrr strategy is to buy below market. so when you put your own money and then refi, you get exacly what you put in.

so, a sample scenario...

if ARV is 100k

you purchase for 60k

repairs $20

you refi at 80% of the $100k, so you get 80k back out

most banks wont give you 80% on the ARV, so this means, you need to either buy it for 50k + 20k repairs OR 60k +10k repairs.

as long as you have cashflow at the end of the REFI process, you are good to go.

that's how it works. 

sounds (and on paper) very simple.