All Forum Posts by: Caleb Coats

Hi @Jeffrey Allenczy, 

What systems did you have in place that went bad and what are you doing to fix them? My wife and I are also converting part of our primary residence into an Airbnb.

@Kevin Ekmark, What's working well for me is to set up a separate savings account from a different bank so it's not easily accessible. It forces you to think about it before withdrawing it to pay other expenses. Also, transferring the savings before paying your other bills teaches you that your savings is top priority and forces you to adjust spending to make it work. I do this with my personal savings but it works great with a business too. These concepts are well described in the books "Richest man in Babylon" and "Profit First". Good luck achieving your goals!

@Cam Jimmy - That's right! it is a good problem to have. Most importantly you took action. Thanks again for sharing and congratulations!

@Cam Jimmy Thanks for sharing. I am looking to do my first BRRRR very soon too.

Based on the numbers, I would agree with the others that this is a better flip. I also like you idea of holding for a year to avoid the short term tax. If you can get through a year without refinancing, that could save on the refi fees but you will have to consider the holding costs. You might miss on some opportunities holding it, unless you have other funding methods. Good luck!

Michael O., Michael D. and Wilburt, Thanks for your reply's. I will definitely have to check out the Renegade Detroit Investors group in January. I went to my first meet-up group last quarter and it motivated my wife and I to finally get started. We have a private lender lined up now and are actively looking for our first SFR to BRRRR.

@Jamiel Strickland

@Gary Carver

Thanks for your welcoming. Perhaps I will see you both around at some meetups. I am not currently looking in the city of Detroit until I learn more about that market, but I love going downtown and seeing the new things happening. I will have to check out the Renegade Detroit Investors group when I start looking into the city. Jamiel, you are right about my passion being in the construction portion of the industry and the value that can be added. With my first couple investments, I want to learn to be more hands off and focus on coordinating the work to save time. I'm concerned getting my contractor's licence could pull me more into the work than I may want to be.

Hello BP community,

I have been exploring the BP community for about a year now, but decided to dive in and become a more active member. I just created my profile description and thought I would make my introduction post and share it with you here. I would be grateful to connect with anyone who has similar goals or has experience with BRRRR's and syndication's that would be willing to share their story.

My Profile Description:

I am an aspiring BRRRR specialist currently in the metro Detroit region, and excited to have a place like BP to share my experiences and connect with members that have similar interests.

I am a Engineer by trade and work in the automotive industry. I am ready to put my skills to use on the side through rental property investing. I read Rich Dad Poor Dad last year and it changed everything for me. My wife Alexsis and I are on a mission to financial freedom, so we can be less dependent on our jobs and do what we want, when we want.

Experience:

When I was a kid, my dad flipped our home and I was exposed to most aspects of building a home. I’m sure my dad was violating some child labor laws but the exposure taught me so much about hard work and rehabbing/building construction. In high school, I was very passionate about architecture and even designed a home in my drafting class. I guess you could say I grew up on real estate, but lost my way through college and at the start of my engineering career.

In January 2018, my wife and I bought our first house in Royal Oak, MI. The home has opportunity for improvements, so this year I added a new front porch that required a permit with the city. I did all the design and work myself, and was able to complete it within our planned budget. We have also installed a new hood in the kitchen, exhaust fan in the bathroom and new windows and door on the garage. We have a long list of future improvements but have decided to shift our focus and finances towards real estate investing. We knew our choice in this home purchase could slow down our path to financial freedom, so we plan to get creative with our financing and bring the brains and grit to the table.

I have been obsessively reading books on real estate, have listened to many of the BP podcasts and I am very eager to get started. I am so proud of my wife too. She decided to get her real estate agent licence this year. Her goal is to use her licence to gain experience and knowledge from helping home buyers/sellers part time and potentially going full time in the future. I’ve considered getting my contractor’s licence, but we will see if it make sense for our future investing plans.

Real Estate Goals:

2018-2020:

• BRRRR 1-2 SFR or small multi-family properties per year
• Learn all the tricks of the trade and set up our systems and processes (as an engineer, I am obsessed with systems and processes)
• Get educated on multi-family properties and syndications
• Attend monthly meetups and network with other real estate investors

2020 and Beyond:

• Complete a syndication with a multi-family property
• Continue using BRRRR on single family homes if it makes sense
• Start building wealth for even more deals

Stay tuned for future updates.

 I like your question @Michael Saberniak. I researched this method a lot and decided not to pursue it. With the $3995 fee and the 3-6% hit trying to pull out the funds, I'm not sure how people are really benefiting from this. Anyone pulling out less than $100k is taking a 7-12+% hit. Plus like you said, a little research and you can learn this process on your own (1. apply for cards, 2. ask for rate increase, 3. request to get credit inquiry off personal report and 4. using various methods to get cash out).  The one thing that I am still hung up on is how Fund and Grow is able to set up a new business that can qualify for credit. I am finding that good old fashioned relationship building seems to yield the most favorable funding methods. Go to meet-ups, build a relationship with a good HML or private lender and the process will be much easier with favorable terms.

For those of you that have used Fund&Grow, do they require you to sign a non-disclosure agreement for the information they provide?

Many of the posts (testimonials) on this thread are not adding any value to the BP community, and have made me a major skeptic. I’m thinking hard money lending is a much easier and similar priced option.

I think it would be helpful to the community to see some clarification on the following:

1. How does F&G help to set up business credit for a new business with no history? It sounds to me like some potentially illegal things are happening here.
2. What is the strategy for getting the inquiries off your personal report?
3. How do you successfully get large amounts of cash transferred from the cards without the bank freezing them? Even from those who have used F&G seem to have trouble here and end up paying fees equivalent or higher than hard money.

Thank you very much to those who have added value in this forum.