All Forum Posts by: Brandy Fujii

Update on my long distance brrrr in Memphis...

So I got my appraisal today, it came in at $95k, which means I will get a check for $71,250 to pay off my LOC. Which also means that I am putting about $12k of my own capital into this brrrr. I am getting about $3,300 back from my contractor, which is a nice cushion. I am throwing my closing costs into the financing. Should be able to rent it out for $825, cash flow will be $130/month.

Honestly thought the appraisal would come back higher and I would get most of my LOC back so that I would not have to use my own funds for this deal but I am happy with the outcome. More importantly, the team that I got to build a relationship with so that I can continue to work with them on more deals.

When I break it down... $12k of my own funds to acquire this sfr, which is fully updated and appraised at $95k is not so bad. I feel content knowing if I did not do this brrrr, and instead saved up $23,750 (25% of $95K) and got a loan from the beginning, that I would be saving $11,750 in the end.

Im scheduled to close on a rental property May 7th. Everything is on time except the appraisal, which has been completed but not out for my viewing yet. This is my second rental property that I’m purchasing in Ohio, using the same realtor, same lender, same insurance, same escrow company. Last week I got an email from escrow with the wiring instructions. Then a few days later I get another email from the same escrow agent, with the same name and email with my realtor cc’d on the new thread. So I thought it was legit. She was asking me to wire the funds at that time “for a smooth transaction and any excess funds would be returned”. I ignored it and asked my realtor about it. My realtor stated that the escrow company is just letting me know. Then they emailed me again yesterday asking if I could wire the funds before closing. I got my preliminary closing disclosure from my lender yesterday so I thought it was all good to wire. The other thing that was suspicious was that the scammer kept emailing/texting me to let them know once I’ve wired it, the third thing was they last minute sent an “alternate” escrow bank account number. I was literally at the bank with the teller and I called the number that was on the email but it just rang. So I told the teller to hold off and I walked out of line. I called my realtor to tell her and she called the manager of the escrow company to find out that no one from escrow emailed me anything and that it was a scammer. I was so thankful that the wire didn’t go through and I listened to my gut feeling. Even the phone calls were under the escrow agents name, the email was the exact same as well, except when I clicked on the name a different email address appeared. My realtor informed me that this happens all the time but it is extremely more prevalent nowadays since there’s been so many real estate transactions... so just be aware of these damn scammers!

Thank you!

Hi Chris.

Yes I’m outta state, I live in Honolulu.

38118.

I am too! My property manager said they receive 6-10 apps a day for rentals.

Investment Info:

Single-family residence other investment in Memphis.

Purchase price: $70,600
Cash invested: $87,500

My first brrrr deal!

What made you interested in investing in this type of deal?

So that I could try to scale faster by using the BRRRR method.

How did you find this deal and how did you negotiate it?

My realtor in Memphis, listed at $75,600, offered $70,600 cash.

How did you finance this deal?

LOC.

How did you add value to the deal?

The rehab just started. The contractor just got funds from escrow yesterday.

What was the outcome?

The rehab will take approximately 3-4 weeks and then I will cash out refi and then rent it out.

Lessons learned? Challenges?

This is my first brrrr.... I will update if/as things come up. I am just hoping that the rehab goes smoothly, and I will be able to get most if not all my capital back so that I can repeat the process.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tyler Tapley has been amazing to work with! He is my realtor. I am working with Security National Mortgage for my cash out refi, Aaron Chapman's entire team has been so helpful and quick.