All Forum Posts by: Charles Chiu

@Alex Cee

Thank you for your feedback.🙂

1. I am a super newbie to BRRR. So I would think my skill level to assess rehab cost is nearly non-existent at this moment. So in this case, I have to rely heavily on my realtor who is an experienced investor.

2. Extensive inspection before acquiring the property? I have not thought about it. Thanks for the feedback. I think that should be done.

3. From a number perspective, 10k may not be attractive enough. From the experience perspective, it may make more sense. But then again, I can already argue with myself that I would probably be better off picking up a smaller deal to gain that experience gradually. Thank you for pointing out the thought with me.🙏

@Andrew Postell

1. We're thinking about owners financing for acquiring the property and then I have a private lender for the rehab portion. Ideally, they will all agree on using current market interest rate.

2. If we go with owners finance and private lender route, there won't be refinance step. However, I would consider dumping my own cash into the project so that I can have the total financed amount down to around 262k and that's equivalent to having 75% ARV refinanced assuming the ARV is 350k. Except in this case, I can skip the processing fees. So my total cash out of pocket would be around 90k (hope my math is right here). Also, this is how that 100 dollar cash flow calculated.

3. You are definitely right. This is under an assumption that I would have about 90k cash dumping into the project and I'm hesitating on that. It seems a lot of cash locked in one deal isn't it? Also, I definitely agree with you that ARV range is large but is there anyway we can find out a more accurate estimate? Without rehabs, appraisers won't be able to estimate right? Or am I having a false assumption here? Honestly, these are the key uncertainty makes me feel anxious 😓

4. Definitely right! I was talking my realtor to be part of this project if I were to move it forward. However, we have not yet talked about how we would partner up.

5. The rehab number was from one of the contractors bid. My realtor has already started receiving bids.

Once again, I really appreciate you taking your time helping me learn to do it. I'm excited about the opportunity but yet I am also aware that current market is not as forgiving. So I want to take extra precautions and learn from experienced investors like you. Thank you!

@Taj Akinbode

I got that from my realtor. He's also an investor. Basically, what I posted was what he shared with me. Is there anything concerning? Please share your opinion. I really appreciate you taking your time to educate me here. Thanks!

Hi I am a newbie to BRRR and I am looking at a potential first deal. Here are the numbers and the way i think of it. I would love to hear your opinions. Thanks in advanced.

purchase price: 150k
rehab estimate: 180-200k
ARV: 360-400k
rent estimate 2,880
loan interest rate: 7.25%
cash flow: $100 / month

Based on the analysis i did, the monthly cash flow would be somewhere around 100 bucks if I manage the property myself and very thin on reserve and potential vacancy. 

i think there are 3 potential risks I can identify.

1. ARV may not be as expected
2. Rent may not be as expected
3. Have a good chunk of cash locked in the property after taking out 75% of ARV

However, there are also positive factors:

1. There could potentially be 50+k equity gain
2. IF (and a big IF) interest rate goes down in the next 12-24 months, cash flow can be better after refinance

This is my first potential BRRR project and am a bit nervous because of the amount of rehab required.
Just want to know if there is any major pitfall in the logic above.
Thank you! Thank you!

Hi,

Does anyone know a good attorney in TN I can hire to do a deed transfer into a Wyoming LLC? Also, can it be done without me physically in TN?

Thanks in advance

I have been thinking about getting myself into brrrr but I'm not sure how much time and effort it would take despite the already hit market. I literally spend 12 hours a day with my client work. Is it possible for me to start on brrrr?

I just learned about umbrella insurance policy today and read over a few posts on it.
Can an umbrella insurance policy covers properties in different states?

Thanks

@Tobias Stoll Even without having the property under the LLC?

@Account Closed do you have a mortgage on the property under your name? If so, how do you transfer that property under an LLC? I learned from my research that most of banks will see it as a sales transaction and would ask to pay off the mortgage. That's what I try to avoid.