BRRRR at its finest.

[Lukasz Boczniewicz]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $110,250
Cash invested: $15,000

Contributors:
Ryan Murray

Large SFR 4 bed 2.5 bath with finished basement over 2,000 sq ft.
Property was sourced of the MLS as an REO. It was purchased with intention of implementing a BRRRR
It was a very simple cosmetic fix up. We are projecting to get or get close to achieving an infinite return on this investment.

Cashflow is projected as of right now, we are in the process of leasing up the space.

Will come back to update the info after we Re-Finance the property.

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

Great opportunity to implement the BRRRR strategy with a solid house in great rental neighborhood. Close enough to home be able to self-manage as well.

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

It was an MLS property, and being an agent, I negotiated for us directly with the bank's agent.
We were not afraid to go low to make this a great deal, but have room to go up if we needed to. After a few rounds of back and fourth negotiations we came to bit of a stall... It was a reverse mortgage property that the bank did not want to sell lower than a certain number. We didn't want to move up, so the bank offered larger than typical seller assist to meet us at our purchase price.

How did you finance this deal?

Private Money backed by the real estate -> full cash offer to the seller using those funds.

How did you add value to the deal?

Bought it below market value.
Light rehab - typical lipstick type renovation.

What was the outcome?

Projected ARV is $170k which should be high enough to get us all of the invested cash out at 75 % LTV at the time of the re-fi.

Lessons learned? Challenges?

- Underwrite the deal conservatively so there is room for hick-ups.
- Don't ever stop looking for bank relationships where you can refinance your properties. They are all not made equal.

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

I would humbly offer myself and my business partner Ryan Murray as a resource in helping find and underwrite deals like this one.
Feel free to reach out and start a conversation. We believe in real estate to be a team sport and we can all help each other along our journeys.