All Forum Posts by: Joe Kling

 Hey Travis

Thanks for chiming in.  The issue Jay was pointing out is not merely in the number of units, but in where the units are located.  A lot of banks are willing to make those commercial loans in a lot of areas, but might shy away from the Detroit Metro area.  I've reached out to someone at B2R to see if they will lend in the area.  I've heard feedback both ways at this point, so I want someone from the group to answer me directly.  

 I will do that Jay.  That might help me narrow the focus down to 2-3 markets that I know could be viable.

 Joe would you consider a blanket loan?  Maybe something from B2R which would allow you to roll three or four loans in to one, which would allow you to perform your strategy two or three more times again?

It's a term @Brandon Turner first used (I think). I know @Joe Villeneuve (among many, many others) is using it successfully.  It stands for Buy, Rehab, Rent, Refi.  It allows you to recycle your seed money by purchasing a property below market, getting it rent ready, renting it at a price which allows the property to cash flow even with a higher mortgage and then refinancing at the now higher valuation to get your seed money out and available for the next project.   

Perhaps we need to talk privately, but I think this is a strong enough strategy that many people might benefit from reading about it.  

Hey James. Hopefully you don't mind a hypothetical. Let's say I wanted to invest in multiple markets and I chose to invest in the Cleveland area from afar. I know you offer PM services, but that's not going to cover the original rehab. How might someone utilize your services to implement a BRRR strategy in Cleveland?

 Thanks Jay.  That's actually the question I have. In other markets I know I can refinance out my original investment. Is that possible in Detroit? 

Hey BP

If I reside in California and want to purchase a property in another state, which state's lending laws prevail? I see a lot of advertisements from brokers who seem to have these great programs, but then I see that they don't lend at all in California. Are there any creative ways to qualify based on the other state's laws? I.e. setup an LLC another state?

Joe

 Hey Darrell 

you might have better luck if you have some details on the property. What repairs are required? What do you see at the best exit? For instance, if you think a flip makes sense what's the ARV? If it's a rental what are the rents?

Ross

At first after reading your post I was outraged at the mark up. The more I read and reflected on it, the more I came to terms with his pricing. He's free to set the price however he wants. He's under no obligation to pass along his cost to you. You're under no obligation to accept his pricing. You decided his markup was too much for you, so you didn't do business, but this doesn't make him dishonest in any way. Most people are willing to pay a premium for convenience and are willing to pay a premium to just get it done right the first time without chasing anything down; his normal customers are most likely not in business themselves. They're homeowners who want to be comfortable as quickly as possible

If you had offered to supply the part I'm sure he would've quoted you the price to install it. That's just the free market. Don't acuse him of dishonesty just because you didn't like his offer. 

 Hey Mike

I was just joking about Detroit. I'm not opposed to that or any other market. That's the purpose of the question. 

In all reality I was thinking about staying in California during the winter and building the portfolio in spring, summer and fall. 

In your opinion none of the markets has an inherent advantage over the others?