All Forum Posts by: Alex Hunt

Hello my name is David. I say seasoned so maybe not by today's standards. I have over 50 doors but have basically done it the old way by saving up down payments etc. and buying extremely distressed and sweat equity Ing them back to life. I have been looking at the Brrrr method. It does seem like a good way to acquire more properties but how do they pay out as far as cashflow when you get say, 20 or so. What are some things to look for along the way? Pitfalls? I am also a general contractor in my area so setting up a scope of work and following it won't be hard plus I can pay myself for oversight and any work done in the process. Any and all help are welcome as I have just begun my research into the strategy.

Hey David!

I think you got a lot of good things going on as you are your own contractor and most likely be able to cut cost in your rehab..

I believe your questions is pertaining to how it cashflows and what are some things to look for as you continue to BRRRR.. Not sure your area that you're investing in, but the perfect BRRRR are kind of hard to come by now in the recent years.. so have the expectations to leave some type of money in the deal..

Big thing that I've ran into and I've seen other investors run into is running out of money doing the BRRRR.. as some or most times you have to leave a bit of money in the deal, folks usually run out of cash to continue to do deals.. especially in the recent years..But good news is.. as you're holding and cashflowing on the deals, there is always opportunity to recapture the equity, not to mention tax benefits etc..

I also see some pitfalls in investors getting desparate for deals, so they get lenient on their number etc.. as they do i see some get backwards on some deals... (or tell themselves $50 cashflow is fine but their standard was $400 kind of thing..)

Hope this helps! LMK if i can help in any way!

I was thinking I would be able to save on rehab or at least pay myself a modest profit for overseeing the rehab and or any work I chose to do in house.

Yes you could pay yourself, lower the cost, reimburse yourself some of the down payment.
Yes wholesale deals are typically off on reno & ARV.
if it helps expand that’s a bonus, putting other peoples money to work while you grow your 50 doors congrats on that! Watch for over leveraging and make sure the ARV is sound & the rental comps are there for what you are looking to get.

happy to chat further!

0 Votes

Charlotte, North Carolina

Most lenders have a seasoning period of 6-12 months, you are past 6 so should be able to cashout refinance off new appraised value right now!

Happy to chat further on this.

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I would rent it out and then do a cashout refinance based on the new rental income, DSCR loan. You will still be on title, own it and hopefully have a decent profit each month!

Happy to chat further on this.

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Houston, Texas

Quote from @Andrew Earle:

We currently have a bridge loans for two portfolios that we need to refinance. We have already refinanced one portfolio with an interest only loan and are looking to continue refinancing the next two with the same company but I am looking to make sure we are getting the best loan package for the next two before we proceed. Any suggestions of lenders for something like this would be appreciated!

Hey Andrew, happy to give some different options!

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Greenville, South Carolina

If credit, DSCR are good then it should be no problem!

$75k min, happy to connect on this!

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Saint Louis, Missouri

Quote from @Raza Rizvi:

Hello Community,

I'm seeking guidance on refinancing a property with an owner-financed loan that's nearing its maturity. Despite the loan balance being relatively small at just over $100,000, the property's value has significantly appreciated to over $500,000. I aim to refinance the loan under conventional investment terms to avoid the high interest rates associated with hard money loans.

With an excellent credit score, securing a loan shouldn't be a challenge. However, I'm concerned about the high monthly payments that come with shorter loan terms. I would greatly appreciate any suggestions or advice on how to refinance this property with a more manageable payment structure.

Thank you in advance for your expertise and guidance.

Hey Raza, taking out the seller note shouldn't be a problem. How long have you had it? If more than 1 year you should be able to go off the new appraised value and cashout refi or rate/term if wanting a lower rate, 30 year terms should be readily available so don't have to worry about short terms. IO also is an option if concerned about monthly cash flow.

Happy to chat further on this!

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Quote from @Mark Walker:

Would like to improve cash flow on 5 SFR, thanks for help.

Hey Mark, yes you can do a portfolio/ blanket loan, have seen up to 30 in 1 blanket!

Rates have gone up on these programs though, so I am unsure if it will improve cashflow as the rate be higher than your current but it does combime them all into 1 payment, which makes it easier.

Happy to look at this more with you.

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Birmingham, Alabama

Cashout refinance is the go to option for this, happy to chat on this!

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Dayton, Ohio

Happy to help on non-recourse!

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All Forum Posts by: Alex Hunt

Alex Hunt has started 27 posts and replied 387 times.

Post: ITIN DSCR Help

Post: Seasoned investor new strategy

Post: What type of cash-out refinance loans are available for fully paid homes?

Post: Creative financing option

Post: Refinancing two 20+ single family rental home portfolios

Post: Looking for a $100k DSCR cashout on property i own free/clear

Post: Owner to conventional financing

Post: Is it possible to refinance 5 SFH individual loans into 1 DSCR loan?

Post: Financing paid off properties ?

Post: looking for a lender

Alex Hunt has started 27 posts and replied 387 times.

Rounded Star Post: ITIN DSCR Help

Rounded Star Post: Seasoned investor new strategy

Rounded Star Post: What type of cash-out refinance loans are available for fully paid homes?

Rounded Star Post: Creative financing option

Rounded Star Post: Refinancing two 20+ single family rental home portfolios

Rounded Star Post: Looking for a $100k DSCR cashout on property i own free/clear

Rounded Star Post: Owner to conventional financing

Rounded Star Post: Is it possible to refinance 5 SFH individual loans into 1 DSCR loan?

Rounded Star Post: Financing paid off properties ?

Rounded Star Post: looking for a lender

Post: ITIN DSCR Help

Post: Seasoned investor new strategy

Post: What type of cash-out refinance loans are available for fully paid homes?

Post: Creative financing option

Post: Refinancing two 20+ single family rental home portfolios

Post: Looking for a $100k DSCR cashout on property i own free/clear

Post: Owner to conventional financing

Post: Is it possible to refinance 5 SFH individual loans into 1 DSCR loan?

Post: Financing paid off properties ?

Post: looking for a lender