All Forum Posts by: Cole Raiford

@Kevin Cascante go to local REIA meetings and network

@Nicholas Groover it's good you are thinking about ways to improve your situation. I suggest focusing on earning more somehow and tracking your expenses closely to see where you can reduce spending. You can get into REI eventually, but saving up some money first would be very helpful. I wouldn't mess with the 401K at that amount.

@Simon Ruiz sure you can purchase with a loan up front then refi out later. You just have to be purchasing a house that is financable to a bank and have to pay loan fees twice. Additionally, you have to buy from someone that will allow you to have a financing contingency and longer close period. Buying with cash removes these issues and opens up doors to buy cheaper, off market properties which is really what you need to make brrrr work in most markets.

@Thomas Moran whats the ARV of the property? I mean, I get that the assignment fee is really high, but are you getting the house well under market value or not? If it's a good buy for you then you should just be happy and not worry about what the wholesaler is making. If you aren't getting a good buy then that's on you and you shouldn't have agreed to the purchase price in the first place.

@Alfonso Aramburo Zepeda admittedly I did not read the replies to this original post, but this is not a brrrr deal. Numbers are no where close. If ARV is $390K as you said, you need to be all in, including rehab, at around $290K to pull your money back out. This house is way too expensive to brrrr at that ARV. Additionally, the rent is too low to cover expenses and PITI for a loan of that size. Sorry to be a downer, just shooting you straight man.

@Josiah Sia the approach works fine. The slow methodical nature of one property every 2-3 years is what will be hard. Once you start and understand REI and the potential of it, and once you know what a good deal looks like, it will be hard to stay disciplined to your plan and let good deals pass by. Your plan doesn't maximize your return, takes a long time, etc but if you can stick with it the approach will work.

Spend some time understanding how to analyze deals to make sure you know what you are buying and what your monthly expenses are. You won’t net $700/mo/unit after expenses, and if you are buying a 4plex in rent ready condition, as you stated, for $150K that brings in $2800/mo I will venture a guess that the location and your tenant pool will lead to additional expenses. Go on YouTube and watch deal analysis videos or watch Brandon Turner’s weekly webinars, as they are geared for beginners and focus a lot on analysis. Good luck!!

@Tyler D'Alessandro so it’s a bad property because it wasn’t cleaned up and there was rehab material and tools left behind? Okay...

@Hannah Mcgowan do you have cash buyers in place already? If not, are you in a position to close on both of these houses with your own funds if you do not find a buyer?

I’m certainly not saying you can’t pull this off, and I hope you do, but what you are describing is highly unlikely.

@Adrienne Donner I agree, good call 😉

@Miguel Salaverria yes, 30 year fixed