All Forum Posts by: James H Webb III

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $85,000
Cash invested: $30,000

SF home purchased with HELOC from my House hack. I have owned the property for a year. Property averaged a 12.5% cash on cash return and with rental rates rising I am projected to grow that number to 22% within the next 3 months!

What made you interested in investing in this type of deal?

Timing and location. It also gave me the opportunity to help someone in need of offloading a worrisome property and make it mutually beneficial for both of us!

How did you find this deal and how did you negotiate it?

Word of mouth. Negotiations were handled by running and analysis on the BP calculator and partnering with the seller in order to get the concession I needed to make the numbers work!

How did you finance this deal?

Conventional financing using a HELOC for the down payment

How did you add value to the deal?

I did all the rehab myself to turn it into a B+ property in a B+ neighborhood in order to receive top dollar for rent. "Rentometer" has the number I am getting for rent in the 99th percentile for the area and I have yet to have a single late or missed payment!

What was the outcome?

Adding a property to my portfolio that has exploded with appreciation and added a significant amount of passive income to my annual salary

@Tom Shallcross this is great! Between the information you and @Sean Pan provided i found a way to not only fund this deal but to get the down payment almost cut in half!!! I could ask for $15,000 from a private investor instead of the full asking price and provide him a much higher ROI for the assistance. I can't tell you how thankful I am for ya'll responding to my post. Now to see if the offer is accepted!!!

@Sean Pan this is brilliant! I only

Have two deals under my belt right now and the the HML said if i brought in another investor to the table as long as we had more than 7 deals between us not only would they approve it but it cuts the down payment almost in half!

@Tom Shallcross right, we are on the same page now. I’ll refy out and payoff the rehab and private investor. Is there normally a percentage you pay a private investor for loaning you the money? Is that percentage paid monthly like a loan or pay them one lump sum at the end of the refy?

@Tom Shallcross I should have clarified better. I have the money if need be to over allow for rehab overages, holding costs, etc. I also have a HELOC that I can use as a fallback in case things really go sideways. Logistically speaking I could fund the project, however you are right it would spread me very thin. I would still prefer to find a way to finance it on my own since I brought a partner in on my last deal. Mainly I think I need assistance on managing risk/fear so I can make an educated decision. Any creative financing advice is welcome! If I were to bring a private investor in, how would I make it profitable or advantageous for them to do business with me on a BRRRR deal I don't intend on pulling money out of?

I just had a deal fall into my lap, however it fell before I was prepared to purchase! I looked into hard money lending to purchase this property as a BRRRR. The price is 105,000 the rehab is 40,000 and the hard money lender agreed to fund the rehab and purchase as long as I could put $38,000 down. Here is the issue....I only have $15,000 to comfortable put down. Does anyone know of a way to get hard money lending down payments decreased? Or any other way to creatively finance a BRRR property with limited down payment!? Thanks in advance and happy investing!

I'm looking to buy my third property! I bought a house hack, followed by a single family that I used a HELOC for the down payment. Now I am looking to buy a third property to BRRRR. My question pertains to marketing myself to agents, contractors, property managers, etc. I want to use my HELOC to fund the Rehab and purchase the home with hard money lending. My hesitancy is that I won't have the HELOC paid off for another 4-5 months. I want to start reaching out now but don't want to put a lot of work on the plates of professionals that I intend on working with until I know I can procure the deal quickly. I work in sales so I know what it's like to be brought work without pay and don't want to burn bridges or make team members think I am not serious because I am not prepared to move immediately. Any advice is greatly appreciated!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $179,000
Cash invested: $15,000

The house had an unfinished basement when I purchased it with a full walk in closet and full bathroom. I finished the bottom out and now rent it out for $550 a month which covers over half of my mortgage. It has been a great confidence boost to live in a fixer upper and get comfortable with collecting rent, doing renovations, and seeing how a tenant will treat your property. I definitely have learned more than I earned with this one, but the information has made itself so extremely valuable.

What made you interested in investing in this type of deal?

I wasn't interested in investing at the point of purchase. This property morphed into and investment about a year after the initial purchase once I found BP and heard about "House Hacking"

How did you find this deal and how did you negotiate it?

MLS and got $5k off the price through agent negotiations.

How did you finance this deal?

FHA Loan with 3.5% down

How did you add value to the deal?

Finishing the basement and placing a tenant.

What was the outcome?

Over 50% of my mortgage being covered, which allowed me the financial stability to buy the next property!

Lessons learned? Challenges?

Don't wrap emotions up in a home purchase even if its your primary residence. I bit on a high counter when I knew I could get it for less. The agent got me caught up in the hype and I left money on the table...Possibly money that could have allotted me a conventional loan and saved me thousands.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $179,000
Cash invested: $15,000

Single family house hack! The house had an unfinished basement when I purchased it with a a full walk in closet and full bathroom. I finished the bottom out and now rent it out for $550 a month which covers over half of my mortgage. It has been a great confidence boost to live in a fixer upper and get comfortable with collecting rent, doing renovations, and seeing how a tenant will treat your property. I definitely have learned more than I earned with this one, but the information has made itself so extremely valuable.

What made you interested in investing in this type of deal?

I wasn't interested in investing at the point of purchase. This property morphed into and investment about a year after the initial purchase once I found BP and heard about "House Hacking"

How did you find this deal and how did you negotiate it?

MLS and got $5k off the price through agent negotiations.

How did you finance this deal?

FHA Loan with 3.5% down

How did you add value to the deal?

Finishing the basement and placing a tenant.

What was the outcome?

Over 50% of my mortgage being covered, which allowed me the financial stability to buy the next property!

Lessons learned? Challenges?

Don't wrap emotions up in a home purchase even if its your primary residence. I bit on a high counter when I knew I could get it for less. The agent got me caught up in the hype and I left money on the table...Possibly money that could have allotted me a conventional loan and saved me thousands.

I’m sure I could manage, however I work 60-80 hours a week. If I take on the job of property management my fear is it will cut into my time for the next property I am going to purchase. I assessed all of my numbers including 15% for property management and included capital expenditures as well as maintenance. The property management company won’t make or break me, however I definitely want to have one in place.