All Forum Posts by: Jon B.

Can anyone please recommend an investor-friendly licensed general contractor who is bonded and insured for a BRRRR/Flip rehab project, please?

I am a buyer and am not familiar with assignment contracts. I have come across multiple properties - typically houses that require rehab - where the seller is not the owner of the property but what I believe to be a wholesaler or investor who has been assigned the rights of the property to sell to an end buyer (me) for a (substantial) fee. Often, the seller in the sales contract is not the owner but the wholesaler/investor. The owner actually largely remains anonymous and I only deal with the wholesaler/investor. Are there any considerations I should be aware of and account for when under contract with a property owner who has an assignment contract with a wholesaler/investor? What kind of due diligence should I be doing to protect myself?

I am a buyer and am not familiar with assignment contracts.  I have come across multiple properties - typically houses that require rehab - where the seller is not the owner of the property but what I believe to be a wholesaler or investor who has been assigned the rights of the property to sell to an end buyer (me) for a (substantial) fee.  Often, the seller in the sales contract is not the owner but the wholesaler/investor.  The owner actually largely remains anonymous and I only deal with the wholesaler/investor.  Are there any considerations I should be aware of and account for when under contract with a property owner who has an assignment contract with a wholesaler/investor?  What kind of due diligence should I be doing to protect myself?

Does anyone have a template they require contractors to sign before starting a rehab project on a BRRRR or flip? I only consider licensed contractors but have found that most reasonably-priced contractors are not bonded or insured. As an alternative, I am requesting contractors to sign hold harmless and release of liability agreements.

Does anyone have a template they require contractors to sign before starting a rehab project on a BRRRR or flip? I only consider licensed contractors but have found that most reasonably-priced contractors are not bonded or insured. As an alternative, I am requesting contractors to sign hold harmless and release of liability agreements.

 Hi @Nicholas L. No, this would be my first investment property.  I'm working w/ a realtor who regularly works with investors and also does project management for BRRRRs and flips.  Just trying to do my own due diligence on my end to understand the various considerations with fire damage properties. 

I am thinking of making an all-cash offer to purchase a SFR with existing fire damage in the kitchen at a price well below market value The property is in otherwise solid condition and in a great neighborhood. I plan on rehabbing the entire property to BRRRR or flip it. What are the considerations I should be aware of in purchasing a property with existing fire damage? Are there any special protocols in repairing the fire damage? Once repaired, how does a history of fire damage impact the insurability or insurance premiums of the property? What about financing post-rehab? Once rehabbed, what disclosures would I have to make if I were to sell it as a flip? What disclosures would I make if I rent to tenants as a buy and hold investment?

I am thinking of making an all-cash offer to purchase a SFR with existing fire damage in the kitchen at a price well below market value The property is in otherwise solid condition and in a great neighborhood. I plan on rehabbing the entire property to BRRRR or flip it. What are the considerations I should be aware of in purchasing a property with existing fire damage? Are there any special protocols in repairing the fire damage? Once repaired, how does a history of fire damage impact the insurability or insurance premiums of the property? What about financing post-rehab? Once rehabbed, what disclosures would I have to make if I were to sell it as a flip? What disclosures would I make if I rent to tenants as a buy and hold investment?

I'm planning to buy an investment property all cash with a HELOC on my primary to BRRRR it. Since I am not using a lender during the escrow process, what are the checklist of things to consider once a property is under contract? In other words, what specific things am I responsible for during escrow for due diligence and processing of paperwork that a lender would typically do? Further, how do I demonstrate proof of funds on a HELOC (ie, the equivalent of a pre-approval letter for a loan)?

I recently took a $300k HELOC on my primary residence with the intent to purchase an out-of-state rental property (mid-west or south). The plan is to purchase a value-add property under market with all cash (i.e., the HELOC) and BRRRR it. I have some cash reserves for closing costs, rehab and PITI until I can cash-out refinance. I figure I would only target properties with a DOM of over 30 days to leverage any desperation a seller might have. Plan is to rent the property as a long-term first and maybe transition to a mid- or short-term down the road. I know long-term rentals are not as lucrative but I want to make sure the numbers work at that conservative calculus and build from there.

How do prevailing interest rates and other conditions in the current market impact this strategy? Is it realistic to BRRRR with a HELOC for a long-term rental right now? What is a reasonable rate of return in today's market? What other considerations and blind spots should I be aware of with this strategy?

I recognize the challenges of today's market for investors and that expectations should be tempered.  I don't necessarily need a double digit return but the property has to at least minimally cash flow.  I definitely do not want to pay out of pocket.  I just want to get in the game and complete my first deal without screwing up and setting myself back.  Appreciate your insight and thoughts.