All Forum Posts by: Isiah Ferguson

Be patient and know what you want. BEST OF LUCK !!

Following... Interested to see what other people say regarding BRRRR

Great question !!

I somewhat get it. I will continue to study it, that way I'll have no confusion at all. 

Buy, Rehab, Rent, Refinance, & Repeat. ( BRRRR )

• 1.Finances’ (CASH)
• The reason for doing this is the ability to be able to use the same funds, repeatedly. After each Refinance period, you will be able to get your funds back. This mean you are not actually Spending your cash. You are Using your cash as many time as you can.
• 2.Find the potential property ( Preferably , the worse property in a great neighborhood. )

• Property must be purchased at 75% of the ARV ( After Repair Value ) minus rehab equal Purchase Price.

• For Example, 75% ARV - estimated Repairs = Purchase price. NO EXPECTIONS’

123 Lauren St estimated ARV is 100k based on comparables'

75% of a 100k is 75K

75k - estimated Repairs = Purchase price

75k – 30k = 45k Purchase price with NO EXPECTION

• Purchasing a potential property at 75% ARV of 100k – repairs allows the property to have forced appreciation at 25K. Once rented at the amount that allows' cash flow after expenses & refinanced at a minimum 75% LTV. This will give you your 45k purchase price and 30k repairs' CASH BACK. Any extra cash back will be considered a plus.

• If the Numbers’ potentially work immediately put an offer in and put property under contract.

• 3.Due diligence process
• We will walk through the property with an Inspector to get an idea of the damages’ & potential rehab cost.

• After the inspector does his/her walk through preferably, the next day have 2 or 3 General Contractors’ walk through to create a Scope of work and give a potential estimate on repairs’ cost.

• After the calculations’ and the NUMBERS’ fit the criteria, set a date for closing and make sure the funds are ready

• 4.Start the rehabbing process
• Thoroughly check Scope of work and meet with General Contractor to discuss start date.

• Pay GC in instalments based on each finished part of job.

• 5.Get Rented

• Take professional pictures of full rehab too post on rental outlets.

• Screen potential tenants with a professional standpoint from top to bottom. Control the process and stick too criteria.

• 6.The Refinance
• Get a lender that meet your criteria and don’t stop until you find the right one. Always be will organized and keep everything professional.

• 7.REPEAT

@Ashish Brar Thank you. I'm hoping my plan is correct. 

@Brent Coombs Thanks for the feedback. Basically, I run the numbers 2 different ways. First I run the numbers using my criteria of the 75% rule. Then as far as cash flow, run the numbers again from the refinancing standpoint. This is why knowing what you're lender can offer as far as LTV, rates, & terms before you find the deal ? At this point the Rent from the area can be factored in and with expenses I can calculate and see if I will get positive cash flow from the deal or not ?

Buy, Rehab, Rent, Refinance, & Repeat. ( BRRRR )

• 1.Finances’ (CASH)
• The reason for doing this is the ability to be able to use the same funds, repeatedly. After each Refinance period, you will be able to get your funds back. This mean you are not actually Spending your cash. You are Using your cash as many time as you can.
• 2.Find the potential property ( Preferably , the worse property in a great neighborhood. )

• Property must be purchased at 75% of the ARV ( After Repair Value ) minus rehab equal Purchase Price.

• For Example, 75% ARV - estimated Repairs = Purchase price. NO EXPECTIONS’

123 Lauren St estimated ARV is 100k based on comparables'

75% of a 100k is 75K

75k - estimated Repairs = Purchase price

75k – 30k = 45k Purchase price with NO EXPECTION

• Purchasing a potential property at 75% ARV of 100k – repairs allows the property to have forced appreciation at 25K. Once rented at the amount that allows' cash flow after expenses & refinanced at a minimum 75% LTV. This will give you your 45k purchase price and 30k repairs' CASH BACK. Any extra cash back will be considered a plus.

• If the Numbers’ potentially work immediately put an offer in and put property under contract.

• 3.Due diligence process
• We will walk through the property with an Inspector to get an idea of the damages’ & potential rehab cost.

• After the inspector does his/her walk through preferably, the next day have 2 or 3 General Contractors’ walk through to create a Scope of work and give a potential estimate on repairs’ cost.

• After the calculations’ and the NUMBERS’ fit the criteria, set a date for closing and make sure the funds are ready

• 4.Start the rehabbing process
• Thoroughly check Scope of work and meet with General Contractor to discuss start date.

• Pay GC in instalments based on each finished part of job.

• 5.Get Rented

• Take professional pictures of full rehab too post on rental outlets.

• Screen potential tenants with a professional standpoint from top to bottom. Control the process and stick too criteria.

• 6.The Refinance
• Get a lender that meet your criteria and don’t stop until you find the right one. Always be will organized and keep everything professional.

• 7.REPEAT

@Richard Moreno Congrats. I hope all is well. Were you still able to cash flow with 8% ?

Awesome ! Great JOB.