All Forum Posts by: Robert Collins

Hi Teonia!

Your idea of combining the First-Time Homebuyer program with a hard money lender for renovations to attempt the BRRRR strategy is an interesting concept. Let's break it down to assess its feasibility.

1. First-Time Homebuyer Program: The FTHB program offers benefits such as down payment assistance, reduced interest rates, or other incentives to help individuals purchase their first home. While these programs typically require you to live in the property for a certain period, usually 5+ years as you mentioned, it's crucial to review the specific requirements of the program you're considering.
2. Hard Money Lender and the BRRRR Strategy: The BRRRR strategy involves purchasing a property, renovating it, renting it out, refinancing to recover your investment, and repeating the process. Hard money lenders can provide short-term loans for property renovations. However, they often come with higher interest rates and fees compared to traditional financing options.

Now, let's assess the combination of these two approaches:

Pros:

• First-time homebuyer benefits: Utilizing the FTHB program can provide financial assistance and make homeownership more accessible.
• Potential for value-add: By using a hard money lender for renovations, you have the opportunity to add value to the property and potentially increase its market value.

Cons/Considerations:

• Living in the property: If you intend to take advantage of the FTHB program, you'll need to reside in the property for the required time frame, typically 5+ years. This might limit your ability to implement the BRRRR strategy immediately.
• Financing challenges: Hard money loans are generally short-term and have higher interest rates and fees. Refinancing after the renovations to recover your investment might be more challenging due to the property being your primary residence, potential appraisals, and loan-to-value ratio requirements.

It's important to consult with professionals, such as a knowledgeable lender, real estate agent, or attorney, who can provide guidance based on your specific circumstances and the local regulations. They can help you navigate the FTHB program requirements, assess financing options for renovations, and develop a viable strategy.

Overall, while combining the FTHB program with a hard money lender for renovations can be an intriguing approach, it's essential to thoroughly understand the implications, restrictions, and potential challenges involved. Conduct thorough research and seek professional advice to ensure you make an informed decision that aligns with your goals and financial situation.

Best of luck with your real estate endeavors!

Hi Steven,

That's an exciting plan to move to Florida and house hack a duplex! Going the FHA route and living in one unit while renting out the other can be a great strategy to start your real estate journey. Here are some tips and advice to make your life easier:

1. Research the FHA Loan Requirements: Make sure you understand the specific requirements and qualifications for an FHA loan, including credit score, debt-to-income ratio, and down payment. Familiarize yourself with the loan limits and any additional costs associated with an FHA loan.
2. Property Analysis: Conduct thorough market research in the areas you're considering, such as Jacksonville, Tampa, and Orlando. Analyze property prices, rental rates, vacancy rates, and neighborhood trends. Look for emerging neighborhoods with potential for growth and solid rental demand.
3. Local Laws and Regulations: Understand the landlord-tenant laws in Florida and specifically in the cities you're interested in. Familiarize yourself with eviction processes, security deposit regulations, and any local ordinances that may affect rental properties.
4. Networking and Local Connections: Reach out to local real estate investor associations, forums, and networking events in the areas you're considering. Connect with experienced investors who can offer insights into the local market, property management companies, and potential deals.
5. Property Management: Determine whether you'll manage the property yourself or hire a property management company. If you're planning to manage it yourself, familiarize yourself with landlord responsibilities, maintenance, and tenant screening processes. Alternatively, research reputable property management companies that can handle the day-to-day operations.
6. Financing Options for Refinancing: While FHA loans are a great starting point, explore different financing options for refinancing in the future. Speak with local lenders to understand the available loan products, interest rates, and terms that can maximize your investment strategy.
7. Analyze Cash Flow: Calculate your expected cash flow carefully, considering all expenses such as mortgage payments, property taxes, insurance, repairs, and vacancies. Ensure that the rental income from the other unit covers these costs, leaving you with positive cash flow.
8. Location Considerations: Jacksonville, Tampa, and Orlando are all popular areas in Florida with different pros and cons. Research factors like job growth, rental demand, proximity to amenities, and potential for property appreciation. Visit these areas if possible to get a better feel for the neighborhoods and make informed decisions.

Remember, thorough research, due diligence, and building a solid team will be key to your success. Stay connected with local real estate professionals and investors to gain valuable insights. Best of luck with your move and your real estate investing journey in Florida!

Warm regards,

Hey Josh,

Congratulations on your newfound opportunity to explore real estate investing! I understand your concerns about the competitive market and the current interest rate environment. However, let me assure you that it can still be worth entering the real estate game at this time. Here's why:

1. Long-Term Investment Perspective: Real estate is a long-term investment, and market fluctuations are a part of any investment landscape. While the market may be competitive now, it's important to remember that real estate values tend to appreciate over time. By starting your journey now, you can begin building equity and positioning yourself for future growth.
2. Income Generation Potential: Your goal of accumulating rental properties to supplement your income aligns well with real estate investing. Even in a competitive market, there is always a demand for rental properties. By carefully selecting properties in desirable locations and conducting thorough market research, you can find opportunities that generate steady rental income.
3. Adaptability and Flexibility: Real estate offers various investment strategies, allowing you to adapt to the current market conditions. For instance, you can consider alternative options like house hacking, where you live in one unit of a multi-unit property and rent out the rest. This approach can help offset the financial burden and make it easier to enter the market.
4. Financing Options and Interest Rates: While interest rates may be higher than in previous years, they are still relatively low compared to historical standards. This means that financing options are available, and you can secure loans at reasonable rates. As you accumulate rental properties, the rental income can help cover the mortgage expenses, making the investment financially viable.
5. Building Wealth and Early Retirement: Real estate has been a proven path to wealth creation and early retirement for many individuals. By slowly accumulating rental properties, you can leverage the power of real estate appreciation, rental income, and potential tax benefits to build a solid financial foundation for your retirement goals.

Remember, real estate investing requires careful research, due diligence, and a long-term mindset. Educating yourself and seeking advice from experienced investors is a wise approach. While the current market conditions may pose challenges, they also present opportunities for those who are willing to put in the effort and make informed decisions.

Ultimately, the decision to enter the real estate game is a personal one based on your goals, resources, and risk tolerance. If you are passionate about real estate, willing to learn, and ready to take action, now can be a worthwhile time to embark on your real estate investment journey.

Wishing you success in your real estate endeavors as you work towards supplementing your income and achieving your retirement goals!

Hello BiggerPockets community,

My name is Robert Collins, and I am excited to reintroduce myself to this wonderful community of real estate investors. I have been actively investing in real estate for the past three years, and it has been an incredible journey so far.

Currently, I own and manage two rental properties that are generating consistent cash flow. Recently, I made a successful sale of one of my rental properties, further fueling my passion for real estate investing. With a focus on expanding my portfolio, I am actively involved in wholesaling real estate in and around the Douglasville, GA area.

I am eager to connect with fellow wholesalers, flippers, and fix-and-flip enthusiasts who share my enthusiasm for real estate investing. Having completed deals in the upstate of South Carolina, specifically in Greenville, Spartanburg, and Anderson counties, as well as the Atlanta surrounding area, I bring a diverse range of experience to the table.

I believe in the power of collaboration and learning from one another's successes and challenges. I am open to sharing my insights and expertise, as well as gaining new perspectives and knowledge from like-minded individuals in this dynamic industry.

If you are a wholesaler, flipper, or engaged in any aspect of real estate investing, I would be thrilled to connect with you. Let's exchange ideas, discuss potential partnerships, and explore opportunities to grow together.

Thank you for your time, and I look forward to engaging with the incredible community here on BiggerPockets!

Best regards,

Robert Collins

Investment Info:

Single-family residence wholesale investment.

Purchase price: $190,000
Sale price: $201,000

Contributors:
Michael Oliver

this was a wholesale deal we had been marketing to back in 2022.

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

the seller was out of state and was ready to sell the home

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

i used SMS to reach out to the home owner to see if they would be interested in selling, they agreed to terms, and price and we found a buyer that wanted it.

How did you finance this deal?

the buyer brought 100% of the cash, and paid us acquistion fee

4Bd, 2.5 BA | 2960 Sqft home in Spartanburg SC. 

Year Built: 2005

1.05 Acre Lot

Great neighborhood

Asking: $305k

EMD: $3,000

ARV: $420k - $445k

Cash Buyers Closing Quickly Only. 

Must show proof of funds to walk through. 

Call Angela for more details - 404-513-9527

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $57,000
Cash invested: $58,000

Contributors:
Angela Collins

buying up all of GA

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

it was actually fell in my lap, I had no choice

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

fell into my lap, I had the bread and boom another deal

How did you finance this deal?

CASH!

How did you add value to the deal?

rehab this whole thing

What was the outcome?

cashflow crazy

Lessons learned? Challenges?

keep buying , but the thing I learn from my Guy REiNextDoor learn how to wholesale, it can change your life!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $65,000
Cash invested: $15,000

Contributors:
Angela Collins

another property added to A&R portfolio

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

cashflow

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

I found it on the mls, I did a quick call to the realtor and offer cash, close fast and boom, another property.

How did you finance this deal?

cash

How did you add value to the deal?

updated the property to 2021 standards, paint, new roof, lip flooring, bathroom and kitchen upgrades

What was the outcome?

crazy cashflow

Lessons learned? Challenges?

buy everything you can when you can.

@Russell Brazil 😂😂😂😂😂😂😂

@Dustin Morris hey im still working trying to find someone as soon as i do ill update and let you know who i found