All Forum Posts by: Jesse Swagerty

@Kristin Caras

We had this happen once. Seller wouldn’t even respond to escrow agent. We eventually got it back after a minimum time had passed without response.

Your agent’s broker should have a legal counsel to advise them on the local law for this. That’s the whole point of EM going to escrow and not the seller. EM still belongs to you until closing or default on your part.

@Theresa Harris

The 3 girls didn’t even bother to turn in their keys...I doubt they’ll be taking anyone to court over their security deposits. It’s a college rental...not a corporate dissolution.

@Morgan Porter

You’re running a business. Not a daycare. Don’t return the deposit until whole house is clean. If the 2 girls were smart, they’d clean up for the other 3 and then just split the whole deposit refund between the 2 of them.

Hey man, I'm using it, and it's pretty dope. Very user friendly, and extremely easy set-up. The wife got us a discount on both systems we bought. I'll ask her how. 

Is this thing on?

I see a lot of discussion about new investors being nervous about their first deal...I remember being there myself. I did not want to buy a rental unless it was going to be a home run! I finally broke the seal. Sadly, No home run...not even a base hit. To this day, maintenance costs and taxes eat up the income that house brings. But I learned from it. I adjusted my process and thinking, and every deal since has been progressively better.

Now...I quit my job to pursue full time investing. My last flip saw 100% return and my wife and I are buying 1-2 houses/month. But I wouldn’t be here if I hadn’t bought that first rental...which technically still sucks.

I speculate I’m not the only person with this experience. Wondering from some other experienced folks, was your first deal a winner, or a loser? Please share.

@Jordan Solomon

There's no exact formula to how you should structure. It's all going to depend on who you plan to use for the refinance and what they like to see. Find a lender that does cash-out refi's and just ask. I literally learned about BRRR strategy just by asking my mortgage broker what I should do. You'll find PMLs are a dime a dozen, but a good mortgage broker is priceless.

As for how to cash out and still pay your private lender interest...you make your money when you buy. Find deals with enough built-in equity, or value-add potential.

@Terry Sain

Agreed with Joe. Generally speaking, if your goal is cash flow and you don't mind managing 2 tenants, then duplex. If your goal is asset appreciation and less tenants to deal with, then SFR. Just depends on your preference and local market. A local realtor would be your best reference to help you understand your market area and decide which is the better investment.

@David Kingsford

If you aren't familiar with the BRRR strategy, google it. But yes it works great.

@Lucas Webb

I've done BRRR a few ways. Every strategy has advantages and disadvantages. I recommend finding a private lender that you can negotiate your own terms. We've nearly lost deals before trying to go conventional, just because the processing time is so long. But here's breakdown of pros and cons I've found:

Conventional loan: Pros: low interest, longest loan term, multiple reviews to ensure it’s a “good” deal. Cons: long closing period (risk losing the deal), highest upfront cost for services required by lender.

True Cash: Pros: lowest cost; Quickest/easiest close process; no maturity date. Cons: You’re making all the decisions without 2nd set of eyes, so you’d better know your sh*#. Need cash.

Hard money: Pros: Fast close; 2nd set of eyes on deal to ensure it’s good investment. Cons: highest interest; many upfront fees; short loan term; construction draws may require inspections to release funds.

Private Money: Pros: negotiate your own terms; Quick/Easy close if lender trusts you. Cons: Not everybody knows someone with that kind of cash; it’s their personal money so emotions are involved; unless they are a seasoned RE Investor, they are not a reliable 2nd set of eyes on the deal.

Note: regardless of strategy, I always recommend finding who you plan to use for refi up front and ask their advice. Every lender is different so you want to establish the relationship early and make sure you’re on the same page so there’s no surprises when it’s time to refi.