All Forum Posts by: Dan Beaulieu

@Daniel Chih

No man. Just, no.

Keep your job as long as possible man. It’s way easier to build a portfolio and get the best financing possible with a W2 job. I see it all the time with my clients struggling to refinance their brrrr deals. That’s too much income to give up at a young age. 

@Elizabeth Beard that is freakin’ crazy. Sorry that happened to you! I’m looking at my pipeline now and 40% of my borrowers are female, and they all have better deals than the men lol.

Non QM loan for the refi. Plan on paying between 5-6.5% depending on the lender. There are lots of 30 yr fixed products out there that are based on the cash flow of the property and not your personal DTI

Hey William, 

In our thousands of hard money loans for BRRRR investors, we've seen the best and the worst in deals. A recurring theme of how BRRRR deals go south: Not enough capital.

Adequate cash reserves will solve most problems. Contractor issues, budget overages, low appraisal on the back end. I have personally experienced all of these things in my BRRRR deals. I would have been in a world of hurt if I didn't have back up cash to save it.

Have 50% of your rehab budget in cash, with a 15K minimum. PLUS whatever down payment and closing costs the lender requires. We stick to this metric for our borrowers, and this is why we have a 0% foreclosure rate in TN. 

@Elizabeth Beard Beware bad information...

As a local hard money lender we’ve used all of them. admiral title is the best in Knoxville and also check out blue ridge title. Evan Anderson runs it and he works mostly with investors 

Here is a Brilliant Wealth Building Strategy that nobody talks about. 

Instead of putting 20% Down buying your primary residence, or buying something retail with a 5% down conventional, or 3.5% down FHA loan, consider this:

Get a good deal on a fixer upper, and finance it with with a reliable hard money /private lender. Get up to 100% of the purchase price and renovation costs covered. Many good HML will do this.

Do the renovations on the property quickly while you still live somewhere else, just as if it were a normal fix/flip. 

In 6 months, refinance into a conventional mortgage at 75% LTV based on your NEW appraised value. Kind of like doing a BRRRR only it's YOU moving in instead of a tenant.

Move into your beautiful newly renovated house. You'll have 25% equity, and if you purchased correctly, you'll be in it for NONE OF YOUR OWN MONEY.

We have a lot of borrowers doing this strategy all the time. What do you think? 

You're at 85% of ARV on the front end side, and using hard money, so there wouldn't be much savings over just doing a retail 20% down, and you'll leave a lot of capital tied up in the deal at the end of the day. You want to be at 75% of ARV or below on BRRRR, ideally 70%. The net worth gain when you BUY these properties is how you build wealth quickly :)

Reach out to @Devan Mcclish who has a solid property management company and can hook you up