All Forum Posts by: Jason D.

@Cody Chavez you won't get no money down from banks.... 15% down for single family and 20% for multi are Fannie mae requirements.

Through hard money, no money down is nearly impossible as well, but if you can find one, youd be looking at possibly 5 points and 15% interest, give or take.

If you have money, but dont want to buy the traditional way, utilizing the BRRRR strategy could allow you to end up with no money out of pocket after refinance.

If you're looking for no money down because you have no money, I would strongly suggest that you save some money first. Owning rental property is full of unexpected expenses, some can be costly.

@Billy White usually not. You are responsible for mitigating your losses by re-renting the property. Then the tenant would be responsible for any loss you incurred while it was vacant

@Keith Ware very few hard money lenders will front rehab money. You're fortunate that you found a lender to do 100% purchase and rehab.

To answer your question.... people fund their projects with personal loans, credit cards, etc... or they bring in a partner with cash for a piece of the profits.

@Christina Gray what are they telling you the reason is that you're not getting approved? That should be an indication on what need to change. Or maybe you need to look at a different type of financing (conventional vs. hard money, or commercial lender vs. residential)

@Meryl McElwain I did it with my first BRRR... used a personal loan for a down payment on a hard money loan.

@Jim Haney I ran into this earlier this year. Did a BRRR that I was confident would have a value of $130k - $140k, appraisal can back at $115k. I told the lender that wouldnt work, and we appealed it. Didnt work, and the lender wouldnt accept another appraisal. We waited a couple months, switched lenders, and the next appraisal came back at $140k.

@Jeffrey Lecroy yes, you can create a lease for this tenant. Just follow your local laws about notice and you should be fine. Be prepared for pushback and how you will handle it. It's very likely this tenant has had a very "loose" relationship with the previous landlord, so following rules may not go over well. Have an eviction plan ready....

@Jason Lawrence I focus more on the report than the score. I have C - C+ area rentals, so scores are generally low because many people in that demographic dont pay attention to, or care about their credit score. I look for red flags on the report and good landlord references

@Masud Khan 30 year.... chances are that you wont keep the property for 15 years, so why worry about paying off the mortgage?

Theres no reason to keep a property that long.... after 7-10 years you'll start hemorrhaging money because your capex items will need to start being replaced. Buy on a 30 year, make cashflow, sell in 7 years and 1031 exchange the gain into larger properties. Repeat 3 times and if done right you'll, more than likely, have a paid off apartment building

@Christine Krizenesky I've never paid a subcontractor a deposit. I will buy material, if needed, through my own HD account, and have them pick it up. I will then pay the labor costs in increments as work is completed. Thatblarg of a deposit up front is a red flag for me