All Forum Posts by: Benjamin Wishart

There are lots of ways to add value to a property. Finding a beat-down fixer-upper and doing the rehab work is one of the more common ways. You could also increase the square footage or add a bedroom (maybe finish a basement, convert a sunroom into living space, convert a dining room into a bedroom, or convert a garage into living space). Depending on the local market that can add huge value to a property without rehabbing every part. Usually converting a 2 bed property to a 3 bed adds a ton of value. 3 to 4 less so but still significant depending on the neighborhood. 

Any property in any location can work as a BRRR if you can buy it right. Rough condition or untapped potential may be the reason you get a good deal. Maybe the sellers are under pressure to sell and you can make the transaction convenient for the. At the end of the day, if you are trying to BRRR you need to add value and it doesn't make much difference how. 

If you are trying to pull as much money out of the property with the refinance as possible (and I assume that you are) your price point can make a huge difference. For example (with simplified numbers):
If you can buy a property for $50k, put $50k into, and end up with a property that will appraise for $150k, you should be able to refinance and pull all your money out.
If you buy a property for $450k, put $50k into it, and end up with a property that appraises for $550k you won't be able to pull all your money out.
In both cases you spent $50k to add $100k in value, but if you refinance for 70% LTV in the first case you've invested $100k and you can borrow $105k, and in the second you've invested $500k and can only borrow $385k.

In order to pull all your money out any price point you need to increase the value by a large percentage, not just a large dollar amount. That is one reason many flippers and BRRR investors target with lower priced markets. 

I second 970 Services! I have worked with them for a couple clients, and I know the owner. Fantastic company!

@April Conaway, so sorry for your loss!

If we can help, please send me a message. I work with a local property management company based in Loveland. We manage 160+ properties across northern Colorado, and we have a resources for legal action if necessary, maintenance and repairs, updates and renovation, and investment analysis. 

• Financing up to $3 Million 
• 12 or 24 month bank statements or asset depletion to qualify
• Down payments as little as 10%
• No tax transcripts or tax returns required
• Credit scores starting from 620

I'm in a similar situation as far as the finance restrictions due to limited income and history (I'm self employed and 2015 was a tight year). I'm not sure about VA loans, but with FHA you can count 75% or rent on a multi Family property as additional income.

Let say you are looking at a duplex. With just your income you might only be approved for $200k, but with rent counted you could be approved up to about $280k ($1200 rent x 75% x 55% debt to income with FHA = roughly $80k in additional mortgage).

$280k could get you a duplex in the Greeley area. 

Looks like @James Orr covered most everything.
@Stephen Spradley I'll just add a couple things that I hope are helpful:

Talk to a lender sooner rather than later. I'd be happy to recommend a few who have treated my investor and VA clients well. Message me if that would be helpful.

I'm not in the same Zillow-is-the-Devil camp that many real estate professionals are in, but there are better places to look for current property information. ColoProperties.com is a good one that feeds directly from the MLS (and isn't tied to one company or agent).

Build a team of people you can trust, and take consistent action. Your timeline is tight, but I think it is possible. 

@Wyatt Simon @Grant Shipman
Wyatt, did you get the duplex? Turns out my partner at the property management company used to manage it, and knows the owners. She said they got something like 17 offers. 
I'd love to grab coffee with you guys soon! Wyatt, I'd love to hear about your experience with wholesaling and your lease option. Grant, I'd love to hear about your businesses and investments (and acroyoga, which I know virtually nothing about, but it intrigues me). Maybe we can support each other on the way to our goals!

@Grant Shipman, I've never heard of Loveland enforcing a U+2 rule so I guess I assumed the rule wasn't on the books. I'll have to educate myself some more about it. Thanks!

Loveland does not have a U+2 rule like Fort Collins, and even in FTC you could rent out a room so long as there are not more than 3 non-related adults living in the property (one side of the duplex). Best of luck with the duplex! If it's the one I think it is, I went through there today and it looks like a good value. Good location for future growth too. Give me a shout if you have any management related questions!

A quick search shows that marijuana sales make up just under 1% of the total GDP of Colorado. While that is certainly significant, it is not the main driving factor of our economy. If recreational pot were banned I don't believe we would see a mass exodus from the state or an economic crash.