All Forum Posts by: Clarence Harris

I completed a BRRRR in april in Jackson and it has done well so far. It was a homerun! but it is in a decent area near the hospitals. Analysis your deals without looking for the cheapest price and something might jump out at you.

i've been wondering too....

@Shawn K Hicks sometimes crosier and sons won’t do repairs. They had a guy out when they gave me a quote and would only do full replacements. However, they were very nice and easy to work with. They were also highly recommended from most people I asked. Just a warning, but do call them to find out!

@Jenn Barona let me know of the next one also.  I have attended, I think (2) with Shawn, but switched markets got 1 deal, and want to take another look at home (gainesville).  

@Shawn K Hicks I concur with Eric Remy.  He even sent me to a bank (deferring his own business) to look out for me.  He doesn't know, but I have landed my first deal and used the bank he recommended!!!

I have a duplex that I purchased with 100k Personal lines of credit (great rates) BRRRR method. All my money is tied up.

Now, If i season 6mos, at 75% refi and reasonable closing cost with a traditional loan, I will be approximately 60% ROI. 2 deals per year though....

If I use a hard money lender 1 mos seasoning at 70% in a P&I product, they charge quite a bit in fees, and the property will ROI at 25%. Approximately 5 deals per year.

In both cases, I am leaving some money in the deal.  Of course, i am calling every bank EVER but my question is more about analyzing the financial principles in this situation.  

My question is; how important is the repeat part of BRRRR to scale quickly? Would multiple deals in a year compensate for this scenario vs less ROI with a hard money lender? Does it matter since tenant is paying for these loans? Do I avoid P&I with hardmoney lender at all cost? What rationale should i use? what metrics do i compare; %money left on table, Cashflow difference per year? I don't know....

Keep in mind, some folks buy turnkeys at 22% ROI. I do want high returns but not at the cost of stifling my scaling. What are your thoughts?

Just bought my first deal January 2020, a duplex in Belhaven.  Spent most of last year learning creative financing. I believe that is my strong suit.  I have a great realtor, and just hired my first contractor..  If you want you can reach out, I would love to share what i've learned up to this point.  As for anything past "purchasing" my first deal.... well these other seasoned vets would have to take it from there.  BUT, I have overcome the newbie fears and worries, and i can speak on that ALL DAY LONG.   

my train of thought..... if i own a property cash, I should be able to get a HELOC on this property IF (big if) there is no closing cost. then, fix the property with that. Which would be my holding cost for a few months then refinance.

so what did you do? I just purchased a house cash with a LOC. I can afford the rehab through a personal LOC and low interest credit cards (worse case, and they do exist, i have great credit). But consequently, i want to see what the banks can offer to beat what I have. Headed there today!

@Monte Watson