All Forum Posts by: Darius Kellar

@Robin Simon

Well said!

The BRRR method is a great and practical method to use when starting out. All of my BRRR's consisted of me receiving 100% or more than the cash that I originally invested into the deal. The problem I have experienced from others using the BRRR method locally in Michigan is when they don't repair the property quick enough. The market shifts and the value goes down at the time of the appraisal resulting in less cash returned to use quickly on the next deal.

One of the most popular questions I get related to the BRRR is… Do I need to remodel the entire property to refinance my money out.?. The quick answer ---> is no you don't.

Many new investors are getting mis-leaded into thinking that the number of units someone has equates to more success. Please add additional comments to assist new investors with this topic.

Just because someone has 100 units does not mean they are running an efficient portfolio. It does not mean that they are doing better than the next person. It just means that they have 100 units. New investors should stick to more practical methods of investing in RE so more people have a greater chance of having a good start.

Connect with me on BP I am an open network

Owner financing is a great way to acquire real estate if you cannot get approved for traditional financing. But I think that newer investors are misunderstanding point of value. With that in mind, just because a seller is offering owner financing terms; it does not mean that you need to buy the property at or above value. The name of the game is buy low or invest in something that is under value at the time of purchase.

If you are getting owner financing to acquire the property please include the evaluation of the risk and time versus doing a simpler acquisition.

If you are a new investor and don't know where to start or if you just have various questions related to real estate.  Send me a message to schedule a 1 on 1 call. 

Paying off a property early will have an opportunity cost associated with it. If you unload your cash, if a unforeseen great opportunity occurs hopefully you are ready. 

Hi Gavin, Some immediate thoughts I had when I reviewed the deal quickly.

1. I reviewed the report that you attached of the house. I wonder if this single-family home has a driveway? Do you think not having a driving will make it difficult to sell later on?

2. The report did not have the square footage of the home listed. It would be helpful to have some more stats of the property.

3. William and Kass are correct. Considering that the purchase price is 25K it would make sense to pursue a personal loan for the something like this.

4. 12 months is a long time. Is there a chance that the ARV could change? Considering that I do not see any interior pics here, and considering that the purchase price is very low will the rehab take longer than 12 months?

5. Maybe this deal could work if you were to negotiate better terms? Like land contract. Some wholesalers are willing to arrange land contract/ rent to own options. 

6. I like this deal because its a practical scenario many investors run into. 

 Thanks and Yes! Lately I have been providing live scheduled video calls to discuss and share my knowledge directly to inspiring investors. I have an open network, everyone is welcome to connect with me here and DM me directly. 

@Jeremy H.

Thanks ;) 

I remember from 2014 to 2017, it took me 3 years until I got to my 3rd house to really have a good grasp on how all of this rental portfolio stuff goes. Once I understood better I was able to expedite my rental portfolio in 2021 by acquiring 4 single family homes in that year alone. 

@Joe S.

Thanks! ;) I tell all my mentee's, slow motion is better than no motion.