All Forum Posts by: Gary Harrell

“Take massive action,” they say. “Just get off the sidelines and do something,” they say. I did. And now I don’t know what to do. I have a small property in Muncie from a wholesaler under contract. I close in 3 days. It’s a flip, and this whole process started 4 days ago. I thought I would be able to use a distant family member as the GC and have his company run the flip for me. He has experience, I don’t. Turns out I can’t use him, and now I’m looking for a new GC. Does anybody have one they like and trust and are willing to share with a newbie trying to make things happen for himself?

Anybody flipping houses in Muncie, IN that can answer questions for me please?

Has anyone struggled to find an insurance company willing to ensure a flip? This will be a total gut rehab.

They’re tough to find. Gotta be willing to grind! Good luck!

Sorry to be confusing. I drive a tractor trailer for a living, was driving at the time and just wanted to get a quick post out. 

My private lender is willing to finance 100% of the purchase price and rehab. I guess that’s why I wouldn’t necessarily call him a partner. I’m the guy on the ground, hustling to get the deal and then keeping the rehab on track before the refi and paying him out. 

I just secured an opportunity with my first private lender. I’m not sure if I would call him a private lender or a partner, maybe you guys can help me with that.

My lender is willing to loan me 100% of cost. I am trying to employ the BRRRR strategy, well my lender has absolutely no interest in long-term rental property.

Can someone please help me design a fair strategy for him to make money on the rehab as well as interest on the use of his capital, while still allowing me to be able to cash flow on the backend after we rent and refinance?

I've just secured my first private lender/partner. I am wanting to employ the BRRRR strategy, and my lender/partner wants no part of rental property ownership. Can I get recommendations on how to structure deals with him so he makes good money on the deal, I can get my cash out, and we can roll into the next deal?

Ironically, I haven’t bought anything that is actually in Indianapolis. I’m digging up properties in smaller towns that people have already put some money into but not so much that it kills cash flow. 

I'm using DSCR loans for acquisition with 3 Rivers FCU. No credit checks, just put together a packet with property info, rental comps, business financials, personal financial statement, and the purchase agreement. Almost as easy as pulling money from my whole life policy for down payment. They have all three of my loans, and had a 4th one in progress when I shut the deal down (not a long story by details unnecessary here).

Welcome, my friend! I'm local here in Indy, building my business slowly but surely! I'm trying to add 6 doors to my portfolio this year, 12 next year. So far I've added one and am making an offer on number 2 right now!

I just used this strategy for the first time on my third investment. Love the idea. Hate the stock market. Hate 401K's. Hate what I don't know. I am not Warren Buffett. I cannot possibly add any value to a multi-billion dollar company with my penny-ante investment in its stock, but I can add value for myself, pull out the loan, pay it back when I want, if I want, write off the interest against the asset (which I can charge myself whatever interest I want as I replenish the cash value of the policy ((which didn't actually go down, kept earning interest and dividends)) all for a net effective interest rate of 1.9%). This strategy I understand. 

They are expensive, for the first few years, but, interest (and maybe dividends (some policies earn them, some don't)) are guaranteed, for the life of the policy, and your cash value is always 100% intact, earning all the interest that's due. If you stuck your money in the bank, earned interest on it, and then took out some cash, you're only earning interest on what is still in the bank. With the type of loan you're suggesting, and the one I used on my last acquisition, you borrow against your cash value, not FROM it, so your cash value remains whole, and you're still earning interest on all of that, so your cash value continues to grow with compounding interest. The loan you take out comes from the insurance company's general fund, which is where your dividends come from (if your policy earns them), and you pay interest annually on that loan, all while your cash value is still earning interest, so the spread is probably going to be less than 2% on that loan. 

Even if you don't pay off that loan, so long as the policy has enough cash value to service the monthly premiums and stays in force, upon your death the policy will pay off the loan and the remaining proceeds go to your beneficiaries. So, you've got an insurance policy for your loved ones, a reserve of cash you can use just by sending an email with a simple request form with the amount you want to borrow (no other questions asked) and many other advantages. If you've got it, use it, replenish it and use it again and again and again!