All Forum Posts by: David Chappell

@Kenneth Garrett when you say "Mine are usually 5 year balloons and then I refinance". What do you refinance into? Another 3/5/7yr commercial loan? Do the closing costs get to be a little crazy?

@Mary Baccellieri it was crazy how fast things fell into place once I kept up with the action. The money is coming from a HELOC I took on my primary residence. I closed on my first property a few weeks ago and hoping to get as close to a BRRRR as possible. I am waiting for the 6 month seasons to refinance into a 30yr. I just found another property I am looking at purchasing where I will use private money to fund the purchase price and use my HELOC for the rehab. The strategy is to recycle the HELOC funds over and over as many times as possible.

Hi @Alexis H. depending on your market, there is most likely a project management company that also will handle the rehabs for you. I have worked with 2 PMs, one in Houston who had employees that would do the rehab and then hand it back over to the PM side of the house to list it and manage it. The company I am working with in Birmingham doesnt do the rehab themselves, but they have relationships with top GCs in the area and they manage the whole rehab project for a small fee. Definitely worth it in my opinion!

@Mary Baccellieri I am in a similar situation as you, I live in Austin TX and this market is crazy expensive. Not quite as bad as NYC but pretty close :) I spent at least 3 months researching different markets and got tired of reading and not taking action. I decided on Birmingham AL and just started reading every thread in the subforum for that market. I made a list of each realtor/PM/insurance agent that was referred the most by the people in the threads and started making calls. It only took me about a month to purchase my first property through a wholesaler and we are working on getting it rehabbed and put on the market in the next few weeks. I got really lucky so far, am definitely happy with all of the contacts I have made so far. I flew there last week to meet the PM and look at the property and spent about 3 days doing nothing but driving around  the neighborhoods. I still have a long way to go though. BUT, Im happy with how things have turned out so far.

Mary - have you thought of investing out of state? You can most likely make your money go a little further in lower cost markets.

@Ashley Wynn do you mind sharing your contact @ Pentagon Federal Credit Union? I am needing to refi and having some issues with seasoning requirements. Thanks so much, feel free to PM me if needed!

@Account Closed I just met with Mark Byers this week to manage my property in Pleasant Grove. He is nice, knows what he is doing and I am looking forward to seeing how he manages my rehab. I will check back in on this thread after the rehab is done but I trust he will get the job done right!

@Jamie O'Brien

Do you have any recommendations on septic inspection companies?

@Account Closed good to see you recommend those guys. Rob was a huge help on the first few properties we put in offers for. Luckily, I am closing on my first property in a few weeks. How have your Birmingham properties been working out for you?

@Jamie O'Brien also curious to see who you found :) I am closing on my first property in a few weeks and need to start lining up meetings when I come into town. Thanks!