All Forum Posts by: Brian Dickerson

Hey all,

We connected with a local property management company in the area we want to invest in and the contractor they use for all rehab/repairs.  The contractor knew of a guy who wants to sell his house (off market) that needs work.  

We were still doing our research the past couple days but the plan was to do a BRRRR deal on it and use the contractor to do the repairs. Well, the contractor took an interest in the house himself and did some haggling with the owner about the price.

The bottom line is: it's a good deal and now the contractor is asking if we want to partner with him somehow.

Purchase price will be around 39k and rehab needed is $15k including labor/materials.

Financially we don't need the partner, though it's out first deal in that area. How would you even structure a deal like that?  Would you do it? 

The only way I see it making sense to partner w/ him is if we got discounted labor rates or something, maybe free/discounted labor on repairs in future, but still not sure how exactly is a good structure.

Input appreciated!!

We are looking to do a couple BRRRR deals soon. In the areas we are looking , the BRRRR deals wouldnt work out in such a way that at refi time we'd be getting 100% of our funds back with a 75% LTV loan.

The resulting ROI is still good, but I'm curious how others do it.

What is a "good" BRRRR deal for you?
In your area can you consistently find BRRRR deals with enough forced appreciation to give you most/all of your funds back at refi?

PS - If anyone knows a lender in Florida who doesn't require the 6mo seasoning period for refi based on appraisal, I'd love to know about them :-)

Became interested in REI last August, read RDPD soon after and a couple other books, but I really learned the most from BP forums and podcasts. We got our first 3 units back in June. They were mostly turn key. Looking back, I would have done BRRRR strategy from the beginning because those first 2 properties used up a good chunk of money for conventional loan down payments which we cannot access anymore. Moving forward we are looking to do BRRRR deals - I think we were too afraid of the rehab initially.

What rental comps are you looking at to get $1050/mo with similar sqft?

I am in a similar situation and researching this as well.  What I have learned so far is that local banks are a little more flexible with seasoning time frames

Sorry for the huge paragraph...the BP app removed my spacing when I posted this ,will fix later.

Hey BP, My wife and I just bought our first three units earlier this year (turnkey). We have quickly realized why the BRRR strategy is awesome for being able to scale faster. It will be some time before we have enough cash to buy a property in cash and fund rehab costs. However, with the renovations we did on our primary residence and the increases in the market, we could probably access around $100k of equity thru a HELOC. I understand the risk of having the HELOC maxed out when the market starts to decline, but what about just using it as supplemental funds for acquisition/ rehabs and then paying it mostly down after refinancing the properties..any negatives?

Originally posted by @Scott Mclaren:

I do it all the time. Have never had a lender call the loan. I just get a warranty deed fill it out notarize it and record it. In Maricopa county it costs only a few bucks. As long as payments are getting made they dont care.  Just keep your name on insurance policy as an additional insured. 

So with I originally got the insurance policy in my own name, then transfer the title of the property to the LLC...do I have to add the LLC to the insurance policy to make it legit?

Yes drywood termites are fairly common. Get a peat inspection and make th seller pay to tent the house if temites are found

Jeff Scott of surespect home inspections.  I originally found him on angies list because of high rating.  He is AWESOME.  Used him 4 times...hes the guy realtors hate because he is so detailed.