All Forum Posts by: Account Closed

Hi everyone and Happy New Year. I'm planning on using a 70K HELOC for my next deal. Initially my thoughts were to use all of it on a 1-4 unit that is distressed and BRRRR it. If I pursue this, it looks like my options are limited to C class areas in FL. So my question to ya'll is this: Would you use all of the HELOC for an all cash buy and rehab like I describe above or use some of it, if the numbers make sense, on a down payment for traditional financing? I now wonder if I could use it on a down payment for several deals in the 50-100K range or perhaps a down payment on a deal in a B class area.. I appreciate the feedback in advance. Thanks so much.

Thank you very much Alina. This sounds like a good next step to take. 

Hi everyone, 

I'm currently pursuing a partnership with two other colleagues and have few questions as it relates to partnership agreements and forming an LLC.

1. Partner A and B will be providing the capital for a property with intentions to BRRRR. Partner C is going to contribute time and work by helping with finding deals, doing most of rehab and property management.

As It relates to a partnership agreement: Can anyone provide good information on how to draft a partnership agreement for this type of partnership? How should a contingency look in the agreement if we decided to exit and sell rather than BRRRR?

2.When to start an LLC? If our collective goal is to buy several SFH properties annually, use the BRRRR process and eventually trade up in bigger multifamily properties, when should we start an LLC. Should we do it now before our first deal? Should we do it at all? I recall mention of difficulties with LLCs when it comes to refinancing properties. Is that true? Anyhow, any feedback would be much appreciated. Thanks.

Way to go @Kyle Mack! Most inspiring thing I've read today.

I've come across a similar deal. I was told a conventional mortgage does not make much sense. The cash needed at closing just seemed to by way too much for such a small loan. I am now considering using a home equity loan and plan to BRRR the property. Of course, private lender would not be a bad idea, especially if you can get the house with equity already in it and force appreciation. Paying that lender back in or around 14mos and refinancing the property seems appealing to me.

Thanks for the advice everyone. This definitely gives me a better idea of where and how to seek the information I need. Much appreciated.

Hi everyone. I am a newb to the BP community and searching for a little advice. My partner and I are currently analyzing several multifamily rental deals in the Pittsburgh area. We have gathered much of the data needed, but my major concern is obtaining the real rental history of a property and not just running numbers based off the pro-forma data from the MLS.

So, my question: What is the proper way to approach the selling agent when seeking this information? Can we obtain this information before making an offer? Should we just knock on the doors and ask the tenants themselves? Should we write a letter of intent and state that we must have proof of renter history or should we include that as a contingency when submitting an offer? 

Any advice would be much appreciated? Thanks so much!

Hi Jasmine, 

May not be a bad idea to pursue a partnership and/or seller financing. Are you considering living in or AKA "house-hacking" this triplex? I agree that this news shouldn't stop you from pursuing deals but having a plan to aggressively pay down your debt should be just an important. It never hurts to seek out better interest rates on your student loans (check out sofi or darien rowayton bank). Id also recommend downloading  some type of personal finance app, like Mint, which does a great job at helping you pay off debt, save money, and automate your budget. Best of luck Jasmine!

Hi Denny, 

Happy to come across this thread because I am in a very similar situation with similar goals. I currently living in the Wash DC metro area with the aim to invest OOS. I am not sure that I am one to give advice considering my experience or lack thereof, but  I will tell you where and why I am looking in these markets: Pittsburgh Pa and St Petersburg FL. 

I have chose to look into Pittsburgh primarily because I grew up there and I would have boots on the ground (AKA friends and family that could potentially be team members: RE broker, contractor, property manager). Also, I like the fact that the economy in Pittsburgh is quite diverse. The economy appears to be well balanced in education, health care, energy, etc. I have also looked at demographic trends in the city. The areas that I am interested in has a majority millennial population, which I assume equates to more renters and less home owners. I have also researched the vacancy rates in the area, which are less than 7%. 

St Petersburg Florida is quite a different story, but very similar for me when it comes to resources in the form of friends and family who share similar goals that I have and could be a strong asset. They are very familiar with submarkets in the area and have already agreed to research neighborhoods and pursue leads. The demographics within the population are different, but the city has been emerging for some years with developers revamping the urban areas with luxury homes and condos. That may leave opportunity for me to find middle-income single or multifamily properties that could potentially be in higher demand for those who can't afford the luxury homes that are popping up all over. 

Hope this helps and best of luck in your endeavors!