All Forum Posts by: Ishviyan D.

In terms of the BRRRR strategy, we know that Fannie / Freddie loans require a seasoning period of 6-12 months prior to doing a cash out refinance (4-10 loans max). This can certainly slow down the clip at which the investor gets his money back to reinvest. Portfolio lenders and commercial lenders that do no have a seasoning requirement nor a max number of loans, although their terms are not as desirable as Fannie / Freddie.

Here's my question: if the investor has not maxed out his Fannie / Freddie loan slots, is there any disadvantage to first dealing with a portfolio lender or commercial lender and conducting many BRRRRs in a short amount of time, taking that approach as far as you can, and then moving on to conventional Fannie / Freddie loans? Wouldn't this approach help you scale up the number of rental properties much faster, by avoiding the Fannie / Freddie roadblocks than can slow you down? 

Hello BP. I'm in the process of structuring my first BRRRR and had a question about using hard money. Would HML's be typically willing to finance ONLY the rehab portion of the project (i.e., I buy the property for cash but use a HML just to rehab it)? If so, are there any major downsides to doing this? Would the following be examples of typical downsides to this strategy:

- rehab amount falls below minimum loan requirement 

- not being able to refinance / use deferred refi since I'm using a loan for the rehab vs. cash

- ARV appraises less than expected, and hence presents a challenge in repaying the HML solely through a cash-out refi

- extended holding costs through being unable to refinance until the required seasoning time period ends (e.g., 6 months, 1 year)

Just trying to get an idea about what obstacles I should anticipate if using this strategy. Thanks you. 

Based on hearing about the experiences others have had with Clayton's company, I'd strongly recommend staying away. As is mentioned above, his company sells properties in highly questionable neighborhoods. I've heard others also complain about the quality of the rehabs. If true, my guess is that the properties would bring nothing but endless headaches and potentially negative cash flow. The numbers on paper may sound great but that doesn't necessarily play out in reality.

@Ruei-Jiun H. I have been using them for close to a year. So far they have been very efficient in their communication and also in how they address issues. Very responsive too. Customers are assigned a specific contact who they can reach out to regarding anything. They have an online portal which makes things very easy. The portal also has a novel way of communicating with a T&H...sort of like an ongoing chat window log. They rented my property in 6 days which was great. I have had no issue with them so far. Let me know if you have any other questions. 

Haven't worked with them but I've heard recommendations for SUV properties

Buy and hold is a great approach but make sure you run your numbers and understand your cash on cash return / return on investment. I wouldn't buy and hold in queens because the numbers just aren't compelling to me. Great appreciation market though, but you may be better off in other areas outside NyC is you are looking for cash flow.

Eric DeVito note: CoC refers to return on investment based on your invested amount. If you put 20k into a 100k home, and you get cash flow of $200 per month, then 200x12 months = $2400 return per year, which is a CoC return of 12% per year. If I were you, given limited opportunities in the NY metro area, i would go for turnkeys. Living in NYC myself, I have purchased turnkeys in Indianapolis and KC and am happy with their performance so far. With a 60K HELOC + 10k savings you should be able to buy about 3 solid rentals with a 20% down payment on each

I have a property under management with voepel. While it hasn't been very long, they have been great so far. Their owner, Brent Voepel, takes a personal interest in the client's satisfaction and based on my initial perceptions and feel, they appear like the type of company that would exceed expectations.

@david Thompson, am I wrong in my understanding that apartment syndication opportunities are only open to accredited investors?

T&H Realty has been a positive experience for me