All Forum Posts by: Greg Kasmer

@Kayla Simmons - I think Jeb outlined the general thoughts on the two ends. I would suggest you also consider a "middle strategy" where you use some of your own funds and then consider asking investments from private lenders which may be less than hard money but more expensive (obviously) than using your own cash. Would you have any friends, family, people in your network willing to loan you funds for 6-9 months (or whatever timeline you need) for a 10% or 12% interest rate? I would suggest you consider that option as well to complement your strategy. Good Luck!

@Nicholas Minich - I think the project management of the renovation process is the biggest area that is underestimated. There's always a plan with a renovation, but then there always what you undercover/discover during the project that you have to adjust to with your contractor. Sometimes you'll need to pivot and reallocate funding whereas other times you'll need to dip into contingency funds and/or come up with more funding to cover newly discovered items that may be infrastructure related and/or critical. Overall, I would say the renovation process/costs are the biggest item to focus on and say on top of throughout the BRRRR process.

@Dylan Mortman - How is the transaction going?

I'd be happy to connect! Let me know when you'd like to talk!

@Robert Davis - I would recommend calling an attorney to get their guidance. If you provided proper notice you should be able to file for possession with your local Municiple court. Once the tenants see that you filed for possession they may see that you're serious and then leave. However, if they continue to stay you'll need to get a judgement in the courts to proceed. I did this recently, but with an attorney. Of course, it will cost you some money, but it may be worth it in the end. Good Luck!

@Rishi Mehra - You are correct in that it's very, very difficult to find a bank willing to do a HELOC (second position) on an investment property. My hypothesis is just they think it's "too risky" especially when you don't live in the home. It took me a few years to look around and just recently I found a regional bank here in Pennsylvania (Fulton Bank) willing to offer a HELOC in a second position. I don't have a secret beyond just calling/asking as many banks as you can. Fulton was able to provide a HELOC up to 75% LTV and that worked for my situation. Good Luck!

@Kyle Williams - Going in your personal name can work for your first several properties, but then due to Fannie/Freddie guidelines you'll start to reach a maximum number of loans (~10) once your portfolio grows. So, if you're planning on scaling at some point it will make sense to buy with LLCs. Good Luck!

@Karla Sosa - I don't know Bakersfield intimately, but when I evaluate a market in general there are several items I consider: Population growth, Income Levels, Crime levels, poverty levels, Rent/Price ratio for the property type your considering, landlord laws, and industry mix. These areas are all "relative" to another market/sub markets... Most of these items can be pulled from public data as well! Good Luck!

@Chaim S.- I agree with the others on your question on the ARV of the property. As for the 12 months seasoning, that is dependent upon the lender you are using. I think some (6 months) is very likely by most lenders, but if you call around enough I think you'll find banks or credit unions, DSCR lenders that work with a 6 month seasoning period.

@Robert McGuire - Do you have any available cash for the down payment? I would think about how you can get 20-25% for the down payment.... If you can drive up the rents and increase the overall NOI in a year, you can then refinance with a new loan and pull out your cash. Sounds like using existing cash coupled with pulling out some equity from your existing properties would do the trick. Could you get a HELOC on your existing (paid off) properties and utilize those funds?