All Forum Posts by: Berny Petersen

@Christopher Silich Sounds like you are definitely on the right track. I have not started the BRRRR strategy yet but I've done some SFR rentals in the past. And yes, the tenant buys you the house! You just have to start with the right deal and then find the right tenant... easy right? I did the deal part right but really messed up with the tenants in the beginning. I wish BP was around then to save me all that grief!

Not sure about the "more cash than you started with" part, but you might be talking about the refinance "R" of the strategy. Since you have already completed the rehab "R" the house will appraise for more than you paid (value add), so you can pull that money out and Repeat. 

Love it...

@Brian Erlich Thanks for the welcome! I love live-in flips - that was my first deal too way back in the day and I try to keep one going all the time.

@Ayodeji Kuponiyi Thanks for the welcome! Good luck with your business.

@Kweillin Gordon Thanks for the welcome!  You are right about availability and pricing - it takes a lot more work these days, but we are up to the task. 

@Terry Burger Thanks for the welcome Terry. I'm in on all the areas you mentioned. Most of my earlier flips were in Dunwoody, with several in the areas of Chamblee and Doraville that were hot and trendy at the time.  You are so right about the pricing these days. It seems some of these buyers are paying for the privilege of flipping a house. We need to zig when they zag...    Please put me on your list, I'll send the info. 

@Evan Morton  Thanks for the welcome Evan. The Atlanta market will keep us busy for a while I'm sure! Looking forward to helping and learning...

BernyP

@Christopher Silich Hi Christopher, thanks for the welcome. Congrats on getting the funds together for your first BRRRR. That is an awesome strategy to follow. You're on the right track with a defined time line in your goal. Too often we just say "ASAP" as our goal, and it never gets done. It really helps me to be as specific as possible when setting a goal. (you might do all this already)

What do I want to buy? If SFR - how many beds, baths, etc. Ranch or 2 story, basement or crawl...

Where do I want to buy it? Very specific here, almost down to the street. Zips and cities are too broad a stroke and wildly varied in Atlanta.

When do I want to buy it? Looks like you have this part down...

How am I going to buy it? Are you going for a conforming loan? Got the lender picked out and pre-approved?

As far as finding deals, that's where it really gets fun! MLS, wholesalers, direct marketing, auctions, etc. No real secrets there, just a lot of work. Research them all and see what appeals to you and dive in. I find that there are lots of opportunities to buy, but are they deals? Get really good at crunching the numbers so you'll know a deal when you see it. When you see it, buy it!

Keep us posted ---

BernyP

@Ben Biggs  Thanks for the welcome Ben! I was just up in the N. Ga mountains yesterday, doing a little pre-leaf change ride on the bike. Beautiful up there and I'll be going back a lot as it gets cooler. 

I'm sure the San Diego market keeps you busy, just as Atlanta does. Looking forward to digging in some more.

Continued good luck!

BernyP

Thanks in advance to all those that contribute, as it's a huge help!

Who am I?

I've lived in the Dunwoody area of Atlanta for a long time and experienced first hand the market growth. I've been involved in several areas of residential contracting, and have owned businesses such as remodeling, paint contracting, and landscaping. I got my RE license in 1998 and began flipping houses shortly thereafter.

I've  done 18 fix and flip deals in the past, all in the North Atlanta suburbs (except for one duplex in Inman Park I wish I had kept...) I also purchase distressed properties as live-in flips. I've been out of full-time flipping for several years and am now getting back in. 

After several years away from the industry I am back and will soon be full time. I plan to resume flipping full time and start the BRRRR strategy after building up some reserves. I am very knowledgeable about my local area and have done well in the past. I have a partner who is a pro contractor as well so I have the "fix" end of the business taken care of, but now to be successful I need to learn more about other areas of town. With resources such as BiggerPockets at my disposal, I will continue to learn and expand my experience, while growing my business and hopefully helping others along the way.

The local market has obviously changed a lot in the last 10+ years since I was flipping full time. Then the deals were easy to find, and I could get a conventional loan over the phone in an hour or so. I never used a wholesaler and only used hard money on one deal. I never had to look much further than my local MLS area.

Fast forward to present day: it's going to take more work to find the right deals. I'll need to be a little more creative with the financing. I look forward to making connections with wholesalers and lenders, as well as other investors, and hope I can contribute to this amazing resource! I know a lot and I have a lot to learn!