All Forum Posts by: Douglas A Lewis

I need a little help! I have a deal under contract that has a purchase price of $70,000. Which means I only need to finance about $56,000 for the property purchase and about $10,000 for rehab. Does anyone know of any lenders that will lend a lower amount than $75,000?

I would appreciate any help you could provide!

Thank you

I have seen a podcast from Morris Invest about Fund and Grow. Does anyone have experience working with them? Is it legit and worth a deeper look?

@Jerad Godefroid

The HELOC money would be cash once you deposit the check into your account so yes you should be able to do that with any loan

Hey Tyler,

I have listened to a lot of the BP podcasts and read some of Ken McElroy's books. My opinion based on this is that you are better off investing in a better neighborhood with a house that needs work than a perfect house in a bad area. In a Dclass area you are more likely to have extra maintenance costs and more frequent issues. I would call some property managers in the area your wanting to invest in and ask them if they would manage the property. If they won't even manage the property that should tell you not to invest there.

Good luck in your investing and hope this helps!

Hello Steph,

Welcome to the BP community! I am fairly new myself, but just got started on a BRRRR in the rehab stage as we speak. I am using a hard money lender from the BP network. As a newbie, I was required to put 20% down(skin in the game) and they paid 80% of the purchase price and 100% of the rehab. It is pretty pricey for the money, but you can just underwrite that into your deal. Your deal has to be good enough and you should be able to get the money needed.

P.S. if you have not used the BP calculators they are a great resource when underwriting deals. I figure on hard money costing anywhere between 10-15% and with points 1-5 points or maybe more so you can put that into your calculations for costs.

Hope this helps!

Good luck

- Doug

I am currently working on a BRRRR project and I used a HELOC for the down payment and hard money for the rest of the purchase and 100% of the rehab money. You could take out a HELOC on your investment property that is "paid off". Helocs on investment properties are usually 75% LTV of the property which is a little less than doing it on your primary residence.

HELOC or home equity line of credit is basically a big credit card backed by the property. I would use for short term rehab and once you have fixed the property, rented it out and refinance you can p[ay back the HELOC money along with the hard money and then repeat the process.

If you can you should check out the BP real estate podcast with Brandon and David. You can learn a lot from those guys!

Hope this helps!

Good luck

- Doug

I’m a drywall finisher by trade and just started investing in real estate. Popcorn and any textured ceiling can be ripped down and reinstall drywall or you can go over it with drywall. Those are good options, but you can also skim coat over the texture with joint compound. I have successfully done this multiple times and is a great way to reduce cost and time.

I have asked family members for money on down payments as a lender or for equity in the deal. If she mentioned that she is interested in investing with you that's great. I was not so lucky because the relatives that I asked live out of state and beyond their comfort level. I was willing to give them 50% of the deal to bring the money since I had the deal for equity side. I offered 10% annual return for their money as a lender. If the money is a down payment they most likely would be a second lien position on the property or first lien position if they put up all the money. Or you can create an LLC and write up an operating agreement which spells out the contract you both want. I would definitely consult an attorney in any case.

Asking for money from your family or anyone you are interested in working with should not be treated as asking for a hand out. Instead you are offering them an opportunity to get a better return on investment than money just sitting in a bank. If they say no chances are its not personal, but instead they may not be comfortable with the investment.

Hope this helps! Good luck!

-Doug

If you are a safe driver I would just try to get the biggest deductible you can handle because that will help to reduce the premium you pay. Keep the deductible amount in savings or build up that in savings so if you need it you can pay with that. From a cashflow point of view this strategy makes sense, because hopefully if you are a safe driver you will never have to pay a deductible and you will have all the extra savings of a lower insurance premium. Just my opinion as someone learning the cashflow game that drives all over the metro Detroit area. I have been in a few accidents in my time driving and never had to use my deductible because they were not my fault. I also would not lie about where you live and register your vehicle.

Hope this helps! Good luck!

-Doug

I am new to real estate as well. Welcome to the BP family! I can tell you that the calculators are my favorite thing to use in BP. I just purchased my first BRRRR property and I am in the process of rehabbing it as we speak. The key is to jump in once you have read a few books and listen to the BP real estate podcasts. For a real estate agent I would suggest using the listing agent of the duplex you are interested in purchasing. Chances are that they may be a little more used to working with investors because generally investors purchase duplexes. At least that has been my experience so far. By using the listing agent you would be giving them the opportunity to get the full 6% commission. Before you do that make sure you know the area and make sure you are good with your numbers when analyzing the deal. Talk to property managers that work in the area for rental comps and other agents as well. Even if you are going to manage the property yourself include the cost of a PM in your numbers in case you no longer want to manage it yourself.

Hope this helps. Again, welcome and good luck in your journey.

-Doug