All Forum Posts by: DMikal Mitchell

@Daniel Hennek thanks for the advice.

@Tarik Turner just sent you a PM.

Hello everyone,

I have a property under contract and my private money lender just pulled out at the last minute due to their other financial endeavors. I don’t want to lose the property and the closing is in about 10 days. I have my own cash for about 70-75% of the deal but I want to get funded for about 50% so I could have reserves. It is for a buy and hold and already has tenant so will cash flow instantly. I don’t want to do a personal loan or use my credit cards, no 401k, and no friends/family that has means to lend. Any recommendations?

@Kyle Jensen yes, I did get the fee's for the refinance. I didn't want to get pre approved just yet because it's only good for 30 days. It seems as though I have all the steps I just have to find the deal that the numbers work.

@Erik W. wow thanks for the very detailed responses! I do have a response for 2-4. For number 2, I meant the purchase and rehab at 70% or less (sorry, worded wrong). For number 3, I found a great guide on BP for estamting ARV that seems to be pretty spot on and I also have my agent check and we just compare. For number 4, if I am understanding correctly you're saying instead of making an offer with contingencies it's better to get the contractor to give me an estimate and if the numbers make sense then submit the offer?

As far as the cash flow, I was looking at a multi unit available for 30k needs an estimate of 15k rehab with a ARV of 60k (refi 70%=42k). I would have 3k (5-7k after all the fee's I'm sure I'm not adding) left in the deal. The mortgage and fees would be around 600-650 per month but both units will rent at 600-650 each. All rough estimates but it seems pretty spot on.

@Daniel Gonzalez 1. I am investing in the Detroit market. 2. Duplex 3. Paying all out of pocket. 4. More than likely full gut because it seems its cheaper to buy a property then rehab it instead of the "face lift" type properties. 5. I have one I am prepared to work with and a solid back up. 6. I was very cautious with this but I did find a great realtor! 7. We're schedule to see the place Saturday. Thanks so much for this checklist, it really makes me feel like I am on the right path!

@Todd Rasmussen I've spoken with a lender but definitely open to recommendations. As far as property management that's the only thing I haven't looked into because I wanted to manage it myself in the beginning to save money but I will consult with one for rent estimates. Also I used the lower number from rentometer. Thanks for the great advice! 

@Jerry Padilla thanks! I have your contact info so we will definitely be in contact when I get to that point.

@Kevin Hill ok I'm assuming that's because you initially state that it is an investment property. He was implying that I should say my investment property is my primary residence to so I could get 95% LTV. I think I will just stay honest an state that it's an investment so it doesn't cause any future mishaps.

@Jesse Rivera I have heard to many horror stories about HML's I think I will just stick with a regular lender to avoid that headache.

@John Warren I am in the Detroit market so it's kind of easy to find 70% of the ARV. But I am definitely not going to sacrifice quality just because the numbers make sense. I am even open to leave a little in the deal as long as it's a quality purchase.

@Jaron Walling ok. I am currently in the process of learning to estimate repair cost but I will also have a contractor present for more accuracy. Just to make sure I have this part correct, once my contractor gives me an estimate I would add the purchase price to that and it should be equal to or less than 70% right? (In order for no money to be left in the deal)

@Kevin Hill I am doing buy+reno in cash. I have spoke with the lender regarding the the cash out refinance. I actually had a question about that. The CSR advised me when doing the refinance state that it will be my primary residence because then they will refi at 95% LTV instead of the average 70-75. He stated "it's not like we are going to drive by your house and verify if you live there." Is this something I could do even though I do not plan on it? That sounds kind of funny and I do not want to do anything illegal.

@David C. Thanks, I plan to keep you guys up to date when I get the ball rolling!

@Matt Pastier Good tips! I am planning on making the numbers extra safe so I am prepared for the worst but still hoping for the best. I agree, with the property I am looking at now I did absolute worst case scenario and I only have about 5-7k left in the deal which isn't bad with a $500-600 cash flow so i'll take it. All the numbers make sense so I plan on pulling the trigger soon, I am just getting all the newbie jitters out lol.

@Jay Hinrichs yes, I agree and I will be doing it locally. Hopefully the risk is worth the reward!

@Jon Schoeller I agree, I will eventually look for my own deals once I get the hang of it. I think once I knock out the first one that will boost my confidence to where it needs to be. Thanks for the words of encouragement!

Hello BP!

First time investor here! I have chosen to start out my real estate investing journey out doing the BRRRR strategy. I have done month's of research (I am a over thinker), learned how to analyze and calculate the numbers, I have the capital, I even bought David Greene's BRRRR book and read it TWICE. For some reason I am still nervous because this is sort of like my one and only shot so I don't want anything to go wrong! Although, I believe experience will be my greatest teacher so I just want to jump into it, but I want to make sure I have this process right so there is as minimum risk as possible. I would appreciate any insight on if I should add or subtract something from my mental checklist when purchasing.

1. Find a buyer's agent.

2. Find a home. (70% or less than ARV)

3. Review comps and make sure ARV is accurate.

4. Make an offer to purchase with inspection contingencies.

5. Once accepted, have inspector and contractor evaluate property.

6. If rehab is within budget (rehab+purchase price=70% of ARV) make an offer.

7. If rehab is NOT within budget, change offer to whatever makes the numbers make sense in above equation.

Am I going about this the correct way? It seems simple and easy but almost to easy. Am I missing anything? Should anything be added to this process? If so where? Feel free to share tips or any good advice as well. Thank you all in advance!

Hello BP!

First time investor here! I have chosen to start out my real estate investing journey out doing the BRRRR strategy. I have done month's of research (I am a over thinker), learned how to analyze and calculate the numbers, I have the capital, I even bought David Greene's BRRRR book and read it TWICE. For some reason I am still nervous because this is sort of like my one and only shot so I don't want anything to go wrong! Although, I believe experience will be my greatest teacher so I just want to jump into it, but I want to make sure I have this process right so there is as minimum risk as possible. I would appreciate any insight on if I should add or subtract something from my mental checklist when purchasing.

1. Find a buyer's agent.

2. Find a home. (70% or less than ARV)

3. Review comps and make sure ARV is accurate.

4. Make an offer to purchase with inspection contingencies.

5. Once accepted, have inspector and contractor evaluate property.

6. If rehab is within budget (rehab+purchase price=70% of ARV) make an offer.

7. If rehab is NOT within budget, change offer to whatever makes the numbers make sense in above equation.

Am I going about this the correct way? It seems simple and easy but almost to easy. Am I missing anything? Should anything be added to this process? If so where? Feel free to share tips or any good advice as well. Thank you all in advance!

@Herndon Davis

Hello, can you also PM me the details for the non qualified mortgage loans? I’m in a similar situation. I have not filed my taxes but I am purchasing in a few weeks and would like to refinance soon after. Thank you!