All Forum Posts by: Aaron Hill

Ko,

The property is in Missoula Montana, I live in Bozeman Montana.  Any tips are welcome!

Aaron

Thanks for all the replies.  I'm a GC as well and did the math, the Heloc would save considerable interest because it would average on 33% of the balance borrowed at any one time (and thats assuming constant deal flow).   Also the home is a subject to, where we are paying the remaining 3% mortgage, so a full refi would not be a great answer either.  I have not checked with my local bank - partly because the home is not local and the investing we are doing is not either.  But I do have my business account at the local bank so maybe that will help.   Worst case is a 3-6 month seasoning period.  

I would love advice from the community on this issue. My wife and I recently inherited a home, which we took possession of earlier this year. We quit claimed the deed into our LLC for liability etc. The plan is to use the heloc to purchase additional properties, and basically brrrr and pay back the balance - then repeat.

What I didn't realize is how difficult it is to find a business heloc. I have searched and filled out endless online forms only to have lenders offer me unsecured loans or other products, but not a heloc. We also tried getting a personal heloc, but can't do that on a property held in an LLC. So before I transfer ownership back and start a seasoning period, I thought I would ask if there were any solutions I am not finding.

Thanks!   Aaron Hil

Just picked up a fix and hold in West Knoxville and I need some plumbing work done.  Adding a bath, moving the kitchen, etc.   New to the area and would love advice on some good contractors (other subs are great too for me to file away).

Thanks!

It is hard to guess without seeing the issue, but by a wide margin the best stain blocker is shellac based Zinsser BIN.   It might be worth a try, it is far superior to Kilz as a stain blocker.  I'm a professional painter, and just used the product on a tough job this week (tried Kilz on a section and it didn't cover, Zinsser covered it perfectly).   Obviously ensure that the underlying problem is solved first, but it sounds like you already have taken all the steps to handle that

https://www.zinsserprimers.com/primers/shellac-base

It depends on what you are painting.  I am a professional painter, we typically spray and backroll any drywall or other wall/ceiling surfaces. If the paint is flat, you could get away with spraying drywall without backrolling, but I still recommend backrolling.  Rolling (or backrolling) gives a more uniform sheen and finish on walls and ceilings.  

Trim, doors cabinets etc. we usually spray - but those can be brushed and look professional if the painter is skilled.  We typically do not backroll exterior siding either.

feel free to message me with more specific questions.

The home is in Missoula, MT.  and yes I have done the majority of the work myself and supervised the items I'm not as comfortable with.

Thanks Jason,

Yes, that is certainly the plan.

Almost wrapped up on my first BRRRR....which I started without having ever heard the term. As I dug into the project, I realized that I was both well suited for flipping (or keeping), but also that I was genuinely enjoying the process. I started listening to BP podcasts while working on the project, and have since devoured material in every form as I changed from fixing up a house - to building a real estate business.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $275,000
Cash invested: $100,000

Hoarder home, removed everything to subfloor and drywall. Nearly complete, waiting on countertops and a couple of incidentals. Slower than I would have liked because my main business is in Bozeman and this project was a 3 hour drive away in Missoula. Rent will be between $2500-2750, ARV of $460,000-$480,000. Perfect project for my skill set, looking for more.

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

I sort of inherited it, it was my mother in law's home.

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

Dealing with the passing of my mother in law. Engaging in the process led me to investigate real estate investment and subsequently to BP. Let's be honest, this deal was easy because of the circumstances and I'm not foolish enough to think it will be like this on other deals. However it did lead me to deeply studying REI as a strategy.

How did you finance this deal?

Assuming the mortgage, rehab with cash.

How did you add value to the deal?

Elbow grease and craftsmanship.

Lessons learned? Challenges?

Deal with financing first.