All Forum Posts by: Gil Segev

@Andrew Syrios just a small nit but for BRRRR to be really effective, you want to be all in at 70-75%. This includes closing, holding, rehab and refi costs.

@Samir Solanki Inspiring! Loved reading it! Well done! 

I obviously know nothing about your future partner but reading what you wrote above, I would run a thorough background check and figure out a way to insure myself in every possible way. 

As the first deal together, I would offer your partner a finder's fee and paying his labor costs but I wouldn't go in 50/50 just yet. 

It's the combination of no funds, bad credit, almost too good to be true deal that make me say this. 

@Scott Henrik son wow! Great numbers!

9 BRRRR! Impressive! What was your average cash left in the deal after refi?

@Brock Maggard makes a lot of sense.. Agee that scaling up too fast before understanding the business is risky..

I think you're absolutely wrong.. You're a pretty decent narrator! :) 

 How much would it have been to have a contractor do the work? If you had someone else do it, you might make less on each deal but you would be able to scale much faster. 

Congrats! Looks like a great deal! 

@Clinton S. It's hard to advise about what to do with the property as this really depends on your investment goals and strategy. 

Treating this as a BRRRR deal: your assumed ARV is 325k which will allow you to pull up to 243k (75% LTV) out of the property and should be around 1300$ in mortgage payment (not including insurance, vacancy and expenses) vs. an 1800$ rent. So, if you buy this property for 237k, you'd need to add your closing and holding costs as well as any rehab required to bring this property to its ARV. Assuming these come up to 243-237=6k, you could refinance and get all of your cash and be left with a positive cash flow. Anyhing above 6k would mean you leave money in the property. I don't think it necessarily makes it a bad deal though.

@Benson Gee nope. I live near Sacramento. We're practically neighbors :)

@Benson Gee Don't worry about it, the more questions you ask, the better are your chances of making your first deal successful!  

I believe Zillow lists both MLS and FSBO properties and as mentioned above, may not pull everything listed on MLS. I probably should have phrased my statement a little differently.

When you put a property under contract, there are terms that need to be agreed upon like price, closing dates, inspections, etc. Depending on the market and deal, you terms may or may not include an inspection period. As an example (but not a proposal..) If you have a property you know is an absolute bargain and you know will require a lot or very little rehab, you could offer an all cash deal with short or no inspection period in your offer. This could make it easier for the seller to accept other terms in your offer such as a relatively lower offer price. 

 The easiest way to understand the buying process where you are buying is to speak with your agent. In AZ where I am currently putting in offers, my agent's standard contract has a 10 day inspection period in which I can get an inspector and contractor in the property and make sure it meets my expectations before closing.