All Forum Posts by: CJ M.

@Kelly Claiborne

There are a lot of comments on this post, and I can't read through them all to understand what the consensus is, but my guess is it is fear. But, that's what separates most successful investors from the mediocre investors from my experience.

@Tom Kaser

This might sound harsh, and I am empathetic to your tenant's situation, but...it is your tenants situation. Theft happens in A, B, C, D, E, F, G, H, I, J....neighborhoods. If you have a bleeding heart in this business, you will not succeed. Show empathy, but ask your tenant to add additional coverage to things like his tools in the future. If your car was broken into, would your tenant help you?

@Wesley Acevedo

It's not up to me. It depends on the lender. Some smaller banks keep the loans on their own books and don't report them.

@Ryan Keenan

No

@Tyler Williams

Congratulations on wanting to take the 1st step! That said based off your question, (and please don't take this the wrong way) it sounds like there are a lot of the basics you still need to learn. My recommendation is to take a deep breath, take a step back, and listen to as many podcasts from bigger pockets as you can, join your local real estate investors association, and network as much as possible. Save as much money as you can in the meantime, so once you are more educated and find a deal, you can jump on it!!

Also, just food for thought, if you are making that kind of money at such an early age (kudos to you!), there is probably pressure on you to perform...especially since it's a new job. Because of that I would be very careful about how much time you are taking away from that job by doing rehabs. In other words, the last thing you want to have happen is to lose that job because your focus is elsewhere.

Anyway, best of luck!

@Nina Granberry

Thank you. The rehab was done right before the pandemic hit, but the refi just closed last month in the midst of the pandemic (portfolio loan). The 5 yr arm is for the 20 yr term on my refinanced loan (if that answers your question?)

@Allan Smith

Agreed

@Mary Baccellieri

Hi Mary, I think most people try and use their own funds for the Buy and Rehab part of the BRRRR strategy. If you use a HML/private money it's typically temporary to cover the Buy and Rehab part. Also, if you're just starting out, they're probably going to be very skeptical of you since you don't have a track record which puts their money at risk.

Anyway, here is a recent example of something I did. I had a HML cover $64K for purchase at 12% and 2 points. It was a 120 day loan. They would have loaned up to 75% of arv ($85K) to help with the rehab, but I didn't take it. Anyway, I used my own funds for the rehab, then took if to a portfolio lender and refinanced it at 75% LTV for 5.25% for 20 years (5 yr arm). At close, the lender paid back the HML and I received the balance.

@Ben Layman

For starters, where are you located? $1700 in rent on a $312,000 property is not great. You could probably grow quicker (with more cash in your pocket) if you just sold that sucker!

@Sharad Peterson

If the property is not in the name of the LLC, you do not want to commingle funds. In other words, keep that rent in a seperate account.