All Forum Posts by: Garrett M.

Roy Gutierrez It is interesting in concept. I asked a similar question here a while back. I was thinking I could get better pricing and more focus than you might otherwise get from a busy contractor. But now it seems more clear that any benefit of lower pricing from a GC partner will be outweighed by giving the contractor a piece of your deal. That equity you give away will cost you each month for as long as you own the property. A regular GC, you pay them once and get to keep the golden goose for yourself.

I buy using Heloc as cash for projects under 125k. Including purchase and rehab. I use a commercial lender to refinance out, there is no seasoning required. Just a renovated property and a signed lease. They look at the strength of the deal and the ARV. Disclosure: I’m purchasing in the name of my LLC.

So Great!!!! Super thankful for the continued excellence of the Bigger Pockets and the community. Looking forward to listening to the podcast!

ThanksIrfan Raza ! I will give that a try. Congrats on your recent projects!

Tae C. I was in your same situation buying my first BRRRR property. I thought I was pretty organized buying in my LLC, only to come to the realization that I couldn't get 30 year fixed financing for the refinance. I was very upset and started looking for options but the high transfer tax and the desire to have liability protection kept me from making the change. So this may not be the info you were hoping for, but I have been fairly happy with the commercial side of things. I was able to refinance using a 5 year fixed rate commercial mortgage with additional 5 year period( at future interest rates) available and a 25 year amortization. I plan to have the property paid down within 5 years anyway so the reset period doesn't bother me. I can recoup my money and turn it over into new projects and the rate wasn't much higher than conventional and it hasn't hurt my cash flow too much. Additionally, operating through an LLC has given me access to business credit that I wouldn't otherwise have come into. I am considering going conventional for other properties in the future but for now I am pleased to have stayed on the commercial side. For what it's worth. Good luck!

Saran Mandhadapu 👆👆👆

I second the vote for Cozy.co. You will need to meet the prospective renters yourself but Cozy hosts your application, offers free (to you) background and credit check and can even collect rent automatically at no cost to you. One idea to make meeting tenants less painful is to hold "open houses" and have all interested parties come through during those hours. This way you don't have to meet with everybody individually which wastes a lot of your time.

Rigo Ventura If the property only needs cosmetic help, then new hardwood flooring, kitchen, bath and paint will do the most to make your property feel new and increase your value. In my experience, I have only gutted everything and started over. New electric, hvac, new kitchen, bath, windows, doors, trim, add closets. This has 2 benefits: it should be a big boost to your new appraised value but more importantly, you have a property with new systems that all the tenants want and you have a long period with few if any cap ex costs.

Jason Johnson Great thread question! I'm going through similar questions. I found this podcast with Caeli Ridge of Ridge Lending Group very informative about maximizing your Fannie Mae loans. It gets into specifics about new reserve requirements and they don't sound unachievable. The link probably won't work, but you can copy and google it. https://itunes.apple.com/us/podcast/simple-passive-cashflow-podcast/id1118795347?mt=2&i=1000384530055 Ultimately, I agree with the other posters that private lending is the way to go when you are ready.

Eddie Lehwald If I were you I'd spread that $$$ around into down payments on multiple properties. Read or listen to Scott Trench's "Set for Life" book and go for the house hack of a 4 unit. Then, when you are living rent free, save 50% or more of your income and invest it in more properties! Good Luck!