All Forum Posts by: Jim Cellini

I don't see any downside to an investment that yields a cash on cash return of infinity....?

Short answer for me is no.  You're spending $51000 to make $175 a month.  The return is low and also that just instantly sets off the "huh??" alarm in my head.  

Now if you bought this all cash and removed all those closing costs, you could get a decent brrrr out of this deal.  

So wait if I'm reading this correctly the upside to a whole life insurance policy is that it's a guaranteed 4%? Isn't that like, half of what the s&p500 would return?

0% chance this is true.

The hell kind of advice is this?  Are you implying successful investors always invest purely local?  That' can't possibly be true.  Me personally, I own 3 properties out of state, all in another state.  They all perform well and cash flow like mad.

Thank you so much!

Does anyone have access to this form they'd be willing to share?  I found the 2019 version very easily but for some reason I can't seem to find the 2020 version on the CARE website.  Thank you for any help!

thanks for the reply!

Rehab should take about 2 months. 

HML terms are 20% down, 12% interest rate (annual), 2-3 points.

I don't think my friends or fam would ask any questions ha. Just seems a little hefty to pay 10% ROI.

Not sure about line of credit terms. Probably about 10-12% interest rate over a 5 year pay period seems to be most sensible.

I mean why shouldn't I just set a pay off period for the LOC as long as possible to make lower monthly payments, then use my refi to pay it off? Is it that easy?
 

Hello there BP. I have a question about financing a BRRRR project. Deal specifics are as follows:

Wholesale deal, 3 bed/2bath single family home in the southeast. Listing price $79500. Needs about 25k in rehab. ARV is estimated conservatively at $150,000. I'm looking to BRRRR and the market rent is about $1150/month after rehab. I have about $30,000 available towards this project. My lender will allow 75% LTV refi after 6 month seasoning period. My financing options are as follows:

1) Hard money loan combining the home and rehab into 1 loan, paying interest only until my refi.

2) Raise capital through various friends and family, offering about 10% ROI over 6 months.

3) Get a line of credit from a company like LightStream for about $90,000.

I am leaning towards the line of credit but have never done it before and am wondering if anyone on the forums has experience doing a BRRRR with a line of credit. Are there prepayment penalties? Is it basically a credit card? How are the monthly payments made and is there a down payment? Anything else I should be aware of?

Thanks for any help on the matter. 

Jim

I just got a duplex to house hack near Avondale with a physician loan. Been going great so far!