All Forum Posts by: Briana Bean

Nick Murray 

Sure enough. Thanks.

Thanks guys

I understand the Brrrr method; mostly. But there is a missing piece of the puzzle in my head. 

It is my understanding that most banks will only give you 10 conventional loans. It is also my understanding that the theory behind the Brrrr method is to roll one rental properties equity into the next one ,by using cash out refinance, and do it over and over until you have met your goal. 

THE QUESTION: So, how do you continually get the bank to keep refinancing your properties into a conventional loan past the allotted number of 10 loans? (Or however many your allowed.)

I got on youtube and watched a video on the basics. I was able to find a few videos that were specific to how to set it up for real estate investors/landlords. I also googled! I think there's a few other forums of people that asked questions regarding this on bigger pockets that helped me. I would just take it one step at a time and research each step.

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Hey! Thanks for your feedback! I've talked to my bank and will be able to have a savings for each house and link them. I think that's a great idea to earn a little interest and keep funds set aside for when needed. @zachvaninger your post was really helpful in figuring out what to do on the quickbooks side. Thanks again everyone!

I know that many have the opinion that you should hire out the rehab work to be done on your flip or rental; however, my husband is skilled in construction work and enjoys it. He would like to buy properties and pay himself to rehab them for flips or buy and hold properties. Can you quit your job and do this, paying yourself what you would have paid a contractor? Eventually, the goal would be to have enough rentals to where we would no longer need to do the work ourselves. I understand this would probably cut out bank financing for a while as a bank wants to see some form of steady long-term income coming in. 

Have any of you guys done this? If so, can you share your experience? 

Is it worth it after interest on the loan you took out to pay yourself and taxes for income are paid? 

Have you been able to find financing at affordable rates? So maybe starting out at higher interest rates with private lenders or  hard money lenders and then refinancing with the bank once you can show the bank a steady income? 

Probably not the strategy for everyone, but my husband would rather work for himself and enjoys this kind of work -- so why not pay himself? 

Husband and I own a few rentals and are working towards more. I am learning Quickbooks and want to get things set up right the first time. I feel like I've got a decent Chart of Accounts in place that I have put together by looking at how other landlords set up their accounts and then tailoring to fit my needs; however, I don't know how to label funds set aside for repairs, capital expenditures, vacancy, (basically any expense you are planning and setting money aside for)? I was hoping to use Quickbooks to keep track of these things to make sure we were setting aside enough for when the time comes that we need to tap into it. Technically, it's not a liability account, because the funds haven't been used. I've read you can create an equity account. What do you guys do?

@Kory Denny I'm a little late coming in the conversation, but I saw that you planned to use VA loans. I was curious how you would do this. I've read that you cannot rent out a home that has a VA loan on it. Also, I've also heard that VA loans have a lot of red tape you have to get through in regards to condition of the house. Just curious as to your experience with it as we have thought about going that direction, because of the appeal of no money down.

Hey,

I'm a year late in responding, but if you're still looking, I can help. I've worked for State Farm 10+ years. We have many investors insured with us. State Farm is ranked #1 in auto, home, and life. 

I think their rental policies work great because you can tailor them to fit your needs, and they insure your properties at replacement cost. Also, with State Farm being as well financially backed as they are, you can bet you will be taken care of should a lawsuit occur at one of your properties. It's also nice that we have local offices. I work for Burlin Hefley's office. He's been an agent 50+ years.

Feel free to contact me if you are interested. 

Briana