All Forum Posts by: Dan Beaulieu

@Brian Boyd Huntsville is crazy hot right now. A lot of my TN based clients are starting to buy deals there and the numbers are usually pretty spectacular. 

Has the lack of capital been holding you back from scaling your business? We will fund up to 100% of the purchase price and rehab costs with no experience necessary. As a passionate real estate investor myself, I want to do everything in my power to help you succeed.

- Up to 70% of ARV (after repair value) on flips, 75% ARV on rentals
- Finance up to 100% of cost
- Competitive Rates
- Close in 5-7 business days
- No income verification
- Streamlined, simple approval process
- No pre-payment penalty

I invite you to Longhorn Investments reviews on FB and google to see what other investors are saying! 

If you have a deal under contract, or have a deal in the pipeline and are looking for funding, contact me today!

Originally posted by @Warren Helmer:

If you're $54,000 in, then you can still make this work. According to the realtor.com calculator, $60K debt on a house, with $100 a month in taxes and $100 a month in insurance, plus an extra $52 PMI (which you shouldn't have to pay, but this could also be extra liability insurance), AND if you are being charged a very expensive 12% rate (think hard money lender), then this house should still cashflow at $950 per month, with your total cost of $869 per month. Am I missing something?

I would find a hard money lender and ask for the $5K-$6K you need for an ac unit, or go cheap and put in window units, and make the house self-sustaining. Unless I overlooked something, you should be able to do this if you're willing to get a hard money loan. It doesn't have to be 12% either, I am just trying to make it expensive to show that it can be done. I included a pic below that explains the details. Please give feedback if I am missing something, or if this will lead to disaster.

I’m Not sure what hard money lender would do a note for just 5-6k? That would be more like borrowing from a friend. 

I agree with @Ned Carey, you want to sell this property as quickly as Possible and move on. I’d get your finances in order before buying the next property. Though houses costing a few thousand dollars can be tempting, More times than not they will Just cause a world Of hurt. You can great much more equity and cash flow in 100-200k properties down there, and they can be leveraged / refinanced / sold more easily. 

Investing out of state, you need a team in place. Your single greatest asset is going to be your property manager who can tell you what and what not to buy, do rental turns for you, etc. there are plenty of good wholesale deals in Birmingham. 

You’ll recover from this and laugh at it one day when you’re an expert! 

@Thomas Reiter there is no way that a hard money loan is riskier than taking equity out of your primary residence. I’d definitely leave that alone!

A good hard money lender will help you succeed. They can look closely at the deal with a trained set of eyes, offer extensions if you haven’t sold the property yet, etc. yes the interest is higher, but it’s interest ONLY so your payments may actually not be much more. It’s a useful tool for buying good deals quickly and easily, and often getting up to 100% of purchase price and rehab costs funded.

As both a lender and an investor, I’ve financed my deals every way you can think of, and HM is still and always a great option on the right deal.

@Mark Leclair Hard money lenders can’t fund anything owner occupied...a good way around that is to use the hml for purchase and rehab if you’re getting a great deal, then refinance into an owner occupied 15 or 30 yr fixed. I have a bunch of clients doing that right now. It’s a pretty smart play since you’ll be able to live there a couple years and cash out tax free.

As far as being afraid of hml...a good hml will offer extensions or try to help you out if you get into some trouble and somehow can’t pay, since they will often lose money when taking back properties. The lender will Be a valuable member of your team going forward.

Best of luck!

@Michael Doherty well done! I encounter this scenario all the time... the cash out appraisal is almost always lower than the appraisal for the hard money loan. Often times people get in there and cut costs since it is just a rental...use cheaper materials, etc. it's the right thing to do rehab wise, but you're correct in that you always have to be very conservative with the ARV in BRRRr deals...perhaps even more so than flips.

@Caleb Bryant Man, that’s awesome. I’ll probably be out at the next Chattanooga happy hour, I look forward to Meeting!

Hey All! I just posted about a happy hour meetup at foam brewers this Thursday at 5 pm. I’d love to meet everybody! 

Hey All! This is a great opportunity to learn from and network with fellow likeminded individuals in a casual and relaxed atmosphere. Networking is EVERYTHING in the world of real estate and in business. 

Bring your business cards, and bring deals if you have them! 

@Monroe M. Consider doing Brrrr. I cannot imagine why anybody would want to put 20% down to buy a rental. I’m doing several at a time and not using any of my own cash...but you will need that 30k in reserves to Qualify for financing, for budget overages, etc.

You’ll need to find a really good deal to make it a viable strategy, but that’s a good thing. You really shouldn’t be buying retail investments or turn key properties in this market.

Find a big / solid property management company that has their own in house project managers, and they can do the rehabs for you so that you can focus on finding more deals.