All Forum Posts by: Bret McKee

@Account Closed So far it's definitely been worth it.  I've definitely had some "what have I gotten myself into" moments, but it's also exciting to be making forward steps and learning.  Thanks for the support!

@Cody Barna this was all funded out of pocket. I basically went through the traditional method of buying a home, while keeping in mind that this was an investment, not my "forever home". I only had to put 3% down, and the seller paid $10k in closing. I was also able to purchase at $8k under appraised value, so the instant equity was nice. Hopefully when I get to the refinancing "R" of the BRRRR, I should get the renovation capital back, in addition to the rental income. I'll post an update once the final numbers are in.

Investment Info:

Single-family residence buy & hold investment in Atlanta.

Purchase price: $450,000

This is my first investment/purchase, and I'm basically trying to house-hack this into a BRRRR. It's a 2,300 sqft ranch with a total of 4b/3ba. I'm currently renovating the basement (adding another 500 sqft) as a full 1b/1ba in-law suite, with separate entrance and parking. Before the pandemic, I had a steady rotation of airbnb style tenants I found through word of mouth.

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

Bigger Pockets Podcasts & Books

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

Real Estate Agent

Lessons learned? Challenges?

The challenges and lessons seem to appear daily, this being the first time. But I think spending more time to find the right agent would have saved me a lot of headaches and surprises.

@Minna Reid

Those are all very sound points, and I appreciate the input.

Just to be clear, he isn’t the type who can’t make ends meet. As I mentioned, this was all brought on by an identity theft situation. I would never entertain the idea of partnering up with someone who was financially irresponsible.

I really would like to try and find a win-win solution that keeps him (and his kids) in his home, and is a viable investment opportunity for me.

I have a friend who's home is currently in pre-forclosure status (caused by a lengthy identity theft situation).  I would like to help him get out from under the mess by relieving some financial stress, and allow him to keep his home.   At the same time, I would also like this to be an investment.    

One idea is that I buy into a percentage of the property based on the amount he needs to get ahead of the curve,  with an option to sell at a given time (say 3 years).  Another option was maybe just a straight loan at 10-12 percent, having the house as collateral.  Or, should I just buy the house from him and keep him as a renter?

Any thoughts, or advice on  a win-win strategy?

Hello Everyone,

I'll be there tonight.  I'm new to real estate investing, but have been doing my homework with BP Podcasts & books.  I'm excited to learn, meet new people, and make things happen!!