All Forum Posts by: James Gates

 Hey Kahi,

If you are going to get a conventional loan during the refinance (which generally have the best rates and terms) most lenders will require a 6-12 month "seasoning" of the property. What that means is you need to wait a least 6 months before you can do at a cash-out refinance at more than the purchase price. If I would have tried to get a refinance during month 3 for example, the lender would have been forced to use the purchase price (60K) as the value of the house instead of the appraised amount (105K). 

When it comes to what does the lender require from the borrower, one word, paperwork. The bank will want to know everything about your financial situation, all your insurance documents, lease agreements, etc.

 Hey Clarence!

The multifamily inventory in  Huntsville, from what I have seen, is very scarce. I have a friend who focuses on multi-family and he does a lot more business down in Birmingham. 

For traveling, I will be heading to Huntsville in two weeks to perform some due diligence on an off-market deal. Next time you are passing through Redlands on the way to the mountains let's grab coffee and talk Real Estate!

David Green's Book on Out of State Real Estate Investing would be the first book I'd recommend if you are interested in BRRRR. I also heard a rumor he is coming out with another book this year...

 Hey Mario,

Great question. It took some time, but we both became more and more interested in Real Estate as we saved for, looked for, and purchased our primary residence. She was 100% on board with real estate investing as soon as we got our own home. That was very important to her (and me as well), and we were on the same page that we would save for a 20% downpayment on our own residence before we would invest. Luckily I found out about the HELOC strategy on one of the podcasts, and we were able to do the best of both worlds!

BRRRR Stands for

Buy

Rehab

Rent

Refinance

Repeat

It is an amazing powerful real estate strategy because it allows you to cycle through your investment capital over and over while building long term wealth.

Here is a primer to the BRRRR Investment Strategy.

 PM me if you are looking for a lender! This lender is based out of Cincinnati, and they lend in most states. 

For the first property I put in half the cash and did most of the work managing the rehab, but I needed a partner to come up with the rest of the cash. I didn't have any rental experience so a 50/50 equity split made sense at the time. 

We do not self manage any of the properties. We have a boots on the ground professional property management team (and would highly recommend it!)

After some searching I found a bank that would lend on a HELOC up to 90% LTV. We had put down 20% on our primary residence, so we were able take out a little more than 50% of our equity (when we did the appraisal for the refinance, our home appraised for 20K more than we bought it for and we were able to take out a loan on the higher amount).

 I started working with a lender at the 5 month mark, and we were able to close at 6 months + 1 day. The lender basically said we could start the process as soon as the place was "appraisal ready." 

 Yep, everything is split 50/50. Any profit from the refinance, cash-flow, and equity when we exchange the property.

Private Messaged!