All Forum Posts by: Account Closed

@Greg Todrank I think this is a very smart strategy in getting the multiple offer deals. If it is an old house look into sewer insurance. Because you are not doing any inspection you won’t have any knowledge of sewer issues and therefore you can get the sewer insurance. Just an idea! I just got it on my last buy and it has already saved me three thousand dollars. And I would not have been able to get the insurance for $10 a month if I had an inspection and it showed sewer problems.

@William Costello I went from 4 units to 30 units this year and am looking to keep expanding my portfolio into 2022. I would like to get to 60 units by the end of 2022! I also got my realtor license this year so I would like to help other people invest and create passive income. 🙌

I own two duplexes in Utah and decided to sell one. I am using a 1031 exchange and am in contract to buy an investment property. Because it is more than 4 units I need a commercial loan. The contract is for $397,000 and I have $125,000 from my 1031. 

I am having the hardest time finding a commercial lender because only 2 of the 10 units are rented out because the owners don’t want to do it any more. In a month the property will be producing positive cash flow and in three months the property will be producing $3000 a month cash flow. 

I could get approved for this in a second if it was a house because I have a stable income, great credit, and a low debt to income ratio. But I am finding that no commercial lenders will lend to me because it’s not producing cash flow right away. 

What do I do? 

@Ashish Acharya how do you go about using private money? I am looking for a step by step brrrr using private money then refinancing.

@Obi I. Thank you that helps so much. I will check those out.

I am super interested in the BRRRR strategy and just want some clarification on how to use a private lender. I would want to use a private lender to put 20% down on the house and 12 months later refi and pay the lender back plus 8-10% interest. Are you able to get an investment loan with a private lender putting down the down payment? If so how does that work? Do they gift it or cosign? I have been looking for an outline on how to do a process such as BRRRR with a private lenders money and cannot find one.

@Katie Miller

If I were given 1 million dollars this is what I would do.

Save $250k as a security budget

Leverage $500k on a $2,000,000 apartment unit with around least 20 units renting out at $1,000 a unit giving me a cash on cash ROI of 13.92% after paying a property manager.

Leverage the remaining the remaining $250k on duplexes or nice single family homes.

Leverage 50k on five different 250k duplexes or nice single family homes.

Hypothetically in my area (Utah):

Homes 1, 2, and 3: Duplex rent both sides for $1,000-$1,200 yielding a cash on cash ROI of 13%-21% to have someone manage it you would be closer to 13%-16% ROI

Homes 4 and 5: Nice single family homes rented for $2,000-$2,250 yeliding a cash on cash ROI of 13%-21% to have someone manage it you could be around 13%-16% ROI

My idea of investing is super hands off and I would be able to hire and outsource all the work without losing money. Since the $1,000,000 was gifted to me I would pay it forward to charity, so after it was invested I would give 10% of the profit from that $1M to charity as an ongoing donation. Obviously as I make more money from my investments I would continue investing in rental properties using leverage.

@Michael Barnhart I agree that using leverage seems to be the more scalable option. Thank you for your input!

I have 2 duplexes and both have a true cash flow of $700 a month. Am I better off letting my tenants pay off my mortgage or pay off the loan right now? I can either fake the cash I have and invest in more real estate or pay off one of my mortgages.