All Forum Posts by: Brian Garrett

Can you put some sort of contingency on the offer to protect yourself? Maybe something along the lines of the offer is contingent on a satisfactory inspection to be done within "x" days?

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Originally posted by @Linda Weygant:

Creating an LLC won't do much for you as you'll still need to personally guarantee the loan and if you can't qualify, then you've made no progress. Banks don't lend to brand new entities with no corporate credit history.

You're going to have to find a lender that will give you a loan without proving your income. It's unlikely traditional lenders will do that, so you may need to ask friends and family for financing.

A HELOC is a pretty good idea, presuming it's already in place. If you're thinking about getting a HELOC now, you'll run into all the same issues as qualifying for any other loan.

You may find a bank that will do a non-recourse loan, which is a loan based solely on the asset value of the property, not your personal credit history or income, but most of the banks I know of require 50-60% LTV on those, so pulling all your money back out isn't really an option.

Good luck!

Thanks for the insight Linda. My credit score is fine (760-780) it's just not being able to show proof of income since I was transitioning out of previous business endeavors for the past two years that's causing an issue and ultimately leaving me in the dark on how to utilize the BRRRR strategy now.

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3% COC is very low. It seems most investors are typically looking for a minimum of 12%.

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@Erik Cabral No problem I'm just hoping there's a way to still be able to utilize the BRRRR strategy for buy and hold cash flow properties even though I'm unable to show proof of income right now. For my flips I'll just buy them cash since it's a quicker turnaround time on my money and it reduces my holding expenses. Hopefully somebody can chime in and help clarify for us!

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How would I be able to buy a property initially and cash out refinance utilizing the BRRRR strategy if I cannot prove income right now? That's the biggest hurdle I'm experiencing in planning for my future cash flow properties at the moment. I have a decent amount of cash saved up but even if I used that to buy a property outright I'm still going to run into the problem of getting my cash back out to reinvest into the next property, correct? Is there anyway around this? Creating an LLC and getting a commercial loan instead of trying to get a conventional loan in my personal name? HELOC? What should my strategy be? I just don't want to end up stuck with the one property without being able to roll that cash over into the next one to keep growing my portfolio.

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Originally posted by @Erik Cabral:

@Brian Garrett I'm assuming you're referring to the cashflow from the rent you'll be receiving from your BRRRR to reinvest into the next property? This technically is "income" but probably not enough to justify a refinance. From my understanding the "refinance" part of the BRRRR strategy is key. I've included a link to a webinar that speaks in detail about this strategy. You may need a Pro account to access this though...

https://www.biggerpockets.com/proreplay/194-how-to...

Huh? You lost me there. The cash flow the property is producing has nothing to do with the cash out refinance to pull my money back out of the property to invest in the next one. I think you misunderstood the post perhaps?

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How would I be able to buy a property initially and cash out refinance using the BRRRR strategy if I cannot prove income at the moment? That's the biggest hurdle I'm experiencing in my planning for my future cash flow properties. I have a decent amount of cash saved but even if I used that to buy a property outright I'm still going to run into the problem of getting my cash back out to reinvest into the next property, correct? Is there anyway around this? Creating an LLC and getting a commercial loan instead of trying to get a conventional loan in my personal name? HELOC? What should my strategy be?

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How would I be able to buy a property initially and cash out refinance using the BRRRR strategy if I cannot prove income? That's the biggest hurdle I'm experiencing in my planning for my cash flow properties at the moment. I have a decent amount of cash saved but even if I used that to buy a property outright I'm still going to run into the problem of getting my cash back out to reinvest into the next property, correct? Is there anyway around this? Creating an LLC and getting a commercial loan instead of trying to get a conventional loan in my personal name? HELOC? What should my strategy be?

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Bump for some more feedback, criticism, advice, etc. Thanks BP'ers!

1 Vote

Originally posted by @Max T.:

I've done one flip so far and only made $10k.

But it was just over a 50% cash on cash return.

I'm just glad I didn't lose money!

Mind sharing the deal with us so we can learn from it?

2 Votes

All Forum Posts by: Brian Garrett

Brian Garrett has started 69 posts and replied 2926 times.

Post: making offer before visiting property

Post: BRRRR without proof of income?

Post: Cash on Cash Returns, SFRs in Los Angeles

Post: BRRRR without proof of income?

Post: BRRRR without proof of income?

Post: BRRRR without proof of income?

Post: BRRRR without proof of income?

Post: BRRRR without proof of income?

Post: Preparing for my first flip!

Post: How much profit should you make on your first flip?