All Forum Posts by: Doug Ford

Hi, What specific "southtown" area are you referring to? I've seen compareables in the 78201 zip that are one street over or even on the same street but a different block (ex: W Rosewood) be considerably more or less desirabile.

Great info, thank you for the time and thought you put into your reply. Much appreciated. 

I'm not privy to your particular financial situation so it wouldn’t be appropriate for me to answer that question. However, for me, before I make a major financial decision, I spend a lot of time educating myself and CONSERVATIVELY calculating ALL the numbers, and possible risks, to be in my favor before committing my hard earned money (or home equity) into any one endeavor. Blessings

Rob, 

I did the same thing. I started this journey three years ago, joined Bigger Pockets and stayed up late every night. It turned out to be a combination of learning a lot, frustration and analysis paralysis. I don't regret all the time I spent on real estate because I used everything I learned to make, what I think, was a good first investment property purchase decision. It's a process like anything else so keep plugging away at it, learn and follow the path of a successful investor. (Read David Greene's BRRRR book) The resources provided here at BP are amazing but not always intuitive so explore every aspect of the website and learn how to use it. Keep plugging potential property deals into the ALL the calculators and really learn how to use and understand ALL the results and terminology. Make contacts here on BP and ask questions. Learn the basics like 1% rule and test potential deals using those guidelines. To become good at this you have to work long and hard like you already are but... don't get over anxious and do a deal just to be doing a deal. There risks even when the numbers work in your favor so set and stick to the tests and calculations you set and a good investment opportunity will show itself.

Last and most important, enjoy what you're doing! Blessings, Doug

Aldrin, simply put, when you're able to BRRRR a property you can get some, all of or even more than your entire investment back out to use for additional investment projects. The velocity of money as David Greene points out in his BRRRR book and podcasts 382 and 382.5. If you just rent a single property, a big chunk of capital is tied up into one property and it takes a long time to get your money back to do further investing. If all you want to do is the one property, then you can just rent. If you want to accelerate your investment portfolio, then you can use the equity in one property using the BRRRR method and get your capital back out to invest in additional properties. Check out Whitney Hutten's articles how to prep for one, how to use other people's money and David Greene’s latest BRRRR podcasts 382 and 382.5 and read his BRRRR book. Those were and still are great resources. Have fun investing!

Thx Ken B. We're exited about the new experience. We were blessed to find a great property. 

A bunch of great feedback! Whitney, thank you for linking me to your prior "Using OPM" article. It was timly and informative. I'm so green I didn't even know there was a 6 month wait (seasoning) and strategies to avoid it. I was under the misconception that I was wisely avoiding HML rates by using my own cash. Here's my current situation: I made an as-is $125K cash, 2-week close offer on a single family residential with a 20K rehab budget for a $195K ARV based on comps, not appraisal (I now see this was a rookie mistake). The offer was accepted at the end of May but the seller asked if I would delay the close so she can recover from surgery and chemo. I was glad to help and rescheduled the close to July 6. After reading Whitney's Using OPM article I'm now thinking I should try to pivot my purchase strategy from cash to HML before the close so all costs show on the HUD. My evaluation of the property show's I'll get my entire investment back out if the appraisal comes in or around area comps AR. Is it even possible to pivot off a cash purchase to a HML at this late date? And, even if it is, should I just leave my 1st BRRRR deal alone and learn from it? Thanks

Perfect Jeremiah. thank you

I do understand the general premise and sequence of a BRRRR. I've almost completed "Buy" - CASH offer has been accepted and the CLOSE is scheduled July 6, 2020 - a month in the future. I'm asking if I can actually "setup" refinancing before I close or if these suggestions just mean I should be exploring my refinance options and making connections? I've been told by a local lender that there's a required 6 month wait period before I can refinance so they suggested I wait until AFTER the rehab is complete before I do anything with refinancing. I'm currently setting-up contractors for the rehab, rent marketing plan and exploring refinance options. Should I be doing something more? Also, when does the 6 month wait period clock start? At closing? Thanks

Thanks for the response. Can I call you direct to ask a few questions? According to one lender, F Mae requires a 6 month waiting period before I can refinance at the new value and not at the purchase price. They suggested I wait until the rehab is complete. What do you know about a 6 mo waiting period?