All Forum Posts by: Clint Muzzy

Hey guys I have an interesting financing situation and need some advice. We're using the BRRR approach with this deal:

I have a single family (2bd/3ba) foreclosure property I'm looking at with an ARV of $80K. We think we can make a deal work at $40K and put about $5K into the renovation. Then we'll rent the property up and enjoy our monthly cashflow for the years to come :)

This deal is unique because it's lipstick flip (interior & exterior paint make up 80+% of our renovation budget). We think we can complete the renovations and have the property ready to rent within 30 days of purchase. 

In a perfect world the deal would go like this- pay for the property and renovations with some form of cash and cash out refi almost immediately and be on our merry way (sidenote: we DO have a bank that won't require the property to be seasoned).

My predicament: We don't have $45K+ to temporarily tie up in the purchase and rehab before we refi cash out. Here's the scenarios we've thought through. 

1. Hard money... won't work because the origination fee + interest for at least 6 months would kill the deal

2. Line of credit... this would be ideal but we're not sure whether we can close on our LOC in time so we're taking it off the table (for now)

3. Private money... this is a viable option

4. Credit card cash advance... this is a hairy method we've kicked around. It could potentially work if we acquire the property for less than expected to cover the additional interest payments. But there's a number of things that could go wrong :)

Right now our most viable option is private money. BUT there's a scenario that I don't fully understand: Since this property is a lipstick flip selling way below market value- is there a way we can purchase using traditional financing from the get-go without putting any money down? Is it possible for the property to appraise for $80K before we even buy it and get the bank to write a check for 80% of the appraised value which we will then turn around and use to purchase the home, fund the renovations, and keep the remainder? Any ideas here? Thanks in advance!

Hello all, 

I pride myself on my level of personal organization (as I'm sure many you do as well). It's how I maintain a strenuous day job in commercial construction mgt, my real estate side hustle, a long distance girlfriend, a busy travel schedule, and still get a good night of rest.

Here's an outline of my principles/tools

Influences: 

Getting Things Done by David Allen

Procrastinate on Purpose by Rory Vaden

Deep Work by Calvin Newport (probably one of the best books I've ever read)

Energy Management before Time Management (nutrition, rest, movement)

Tools: 

Bullet Journal (this is new to my system & I love it- I'm a pen & paper kind of guy)

Google Reminders (whenever one of my trusted systems aren't present)

Google Inbox (vs. Gmail. For those of you who don't know inbox... it is much different)

General reference filing/binders

Google docs (I use this heavily for personal reference & collaborating with my business partner who's a few states away)

Tickler file system (coming soon...)

I was curious what other people out there use to organize their lives? What systems/tools? What are your influences? What books do you recommend? 

What's your plan with the houses? Flip? Fix and rent? Wholesale?

Vee- My partner and I have just about completed this "beginnings" journey . Getting ready for your first purchase will depend on the person, their goals, and their experience among umpteen other things. A few big picture things to focus on: 

1. Your plan. Understand your ultimate purpose and your long term goals before you do anything. Put these in writing. If you have a business partner make sure you are on the same page. Having these will successfully guide you through your real estate journey. My biz partner and I spent half a day brainstorming about where we will be in 5-10+ years both in real estate and outside of real estate. We have no doubt that being upfront about our end-game will help us execute flawlessly TODAY. 

2. Your education. Make it a habit or routine to educate yourself about real estate. Read books, listen to podcasts (BP is a wealth of info), talk to others about real estate. Take this information and organize it in a general reference file/take religious notes, and start picking and choosing what you think you can apply to your real estate hustle. Retain this information in a trusted system (RE: David Allen's Getting Things Done). 

3. Your relationships: Start talking to people, call everyone you know with ties to real estate. Put your feelers out there, talk to people and start developing a network/mastermind team of people you can call. Lawyers, agents, lenders, property managers, contractors, etc. Tip: Create a contact list to organize this information. 

The LLC, S-corp, website, etc. are just incremental parts of beginning a successful real estate hustle. Once you ID who you are and where you're going, start learning, and start developing relationships the rest will become evident.

You should be able to download it! Let me know and I can try something else.

Hey everybody- I'm very excited to break the ice and start my first discussion!

What I've got here is a BRRR spreadsheet that I've been working on and was hoping to get some feedback from those more experienced than I.

My goal was to make a spreadsheet that was a bit more phone friendly than the BP calculator that I could plug numbers into quickly while out and about. The light blue cells require inputs unique to each property. After plugging in values to all the required cells, it should spit out results that hope tell you yay or nay. Please take a look and let me know if there are any questions/comments!

https://drive.google.com/open?id=1G223MwQNZb2UzpDUL_pX4jFLZt5VUgR2Dj5htuI6tH0