All Forum Posts by: Derek Diamond

I am a BRRRR investor, not a wholesaler but if you need someone to walk/talk through a deal I can help.

@David Curtis Johnson Jr

Hey David! Welcome to BP.  I really like this strategy for starting out.  I was about your age when I did this very same thing. I bought a duplex and lived in the back unit.  It was a crash course lesson to say the least.

Why do you need a hard money lender? Have you looked into using a conventional loan or FHA with a 3.5% down payment? I only say the because a hard money loan could be 10-12% where a conventional would be about half of that. But maybe you can not go conventional because the place needs some major work.

One piece of advice I wish I knew was to have a reserve fund or emergency fund.  For me my water heater broke the first weekend and I had no money to hire a plumber, so glass half full, I was able to learn how to replace one on my own.  I got lucky but it would have been easier to sleep with a little bit of money in reserve.

Good Luck. I know you will have great success!

Hey @Anthony Mata

You should just call a local lender and run your situation by them.  They should be able to walk you through the whole process relatively fast and see if they can help you or not.  If not you can always get creative with private money or asking family.

Hey @Richard Lovering

That's great. Congratulations!  Keep it going!

Hey @Kacie Benson

I did something very similar.  I did a few house hacks and then got pushed out of my market due to prices increasing rapidly and comprising the returns that I want to get for an investment property.  So last year I took the leap and bought out of state.  The numbers hit my requirements but there were some serious headaches due to me being so far away.  But now that I am over a year in I have stabilized the property and increased the rents.  It was a great decision.  If you find a good property and you are committed, I would say go for it!!

You will sure learn a ton.  I would recommend not maxing out what you can afford if it goes sideways you won't be wiped out.

Hey @Brent Crosby

How do you get your significant other on-board? 

Hey @Nathan Shankles,

I would want to know about the exit strategy that the three of you would use.  They will clearly want their money out before you would.  That could be a great situation because you would be able to buy them out and own the entire portfolio if that's your goal or really bad if you just want a few homes paid off at the time you retire hitting your cashflow number.

I would also want to know how large everyone wants to grow the portfolio.  It sounds like you are all very similar but make sure one person does not want to leverage up to a 300 unit building  and while another is very conservative and just wants a few properties here and there.

Last, partnerships always sound good in the begging because everything is great.  I would sit down and think of the bad stuff that could and hopefully won't happen but have a written plan if it happens.  I.E. if one person get divorced and needs the money from the portfolio they will be bought out at 80%... or whatever.

I think if you are all on the same page with similar goals I would go for it!

I personally piggy back off my work CRM but I do not have a good system set up yet and I am constantly trying to improve.  My system emails me when I need to reach out to someone.  It has a task section that is "clunky and slow" but I a trying to transition to that.

A conventional loan and FHA will always have the best rates/terms. But if the house is not ready for the end consumer (think cracked windows or something that does not make it livable) you might not get the loan. I would start with that financing and make them tell me "no" before I got to a private lender that will charge +12%.

@Reginald Wilson

Hey Reginald, Welcome to BP!  I invest in Dayton but have been thinking about Columbus for awhile now.