All Forum Posts by: Jose G Delvalle Bueno

@Shere Hansell so far everyone goes through title search, apprasial and by the time everything is said and done it's been 3 weeks or so. Also, the proof of fund letters lenders normally send me are not actual proof of funds since they always add wording stating subject to underwriting approval

I have noticed that working with private lending companies there is a lot of red tape/requirements that dont really let you present your offer as a cash offer or require 3-4 weeks to close, which is not feasible in order to make a strong offer. Is this the case for everyone working with private lenders

@Sam K. It was a pretty big house. Each apartment had 3 bedrooms. I had to replace all three boilers, 2 hot water tanks, upgrade the circuit panels, and replace most of the plumbing in the walls Since during the winter many burst due to freezing. I had to repair the driveway, new fence, do the roof suffice, new kitchen cabinets for one of the units, fix the front and rear decks/porches, installed security cameras, eviction cost of 3k, dumpster cost, paints, interior door

@Jaysen Medhurstgood to know. That is something I wasn't aware of.

I agree that w everyone is different, but just like everyone my main concern is kids tuitions and health insurance. My income is close to 200k so to replace my living lifestyle it would take 15-20k a month. I am searching for my third property now and hope to walk away from my w2 in five years. I am 38 now. I think the biggest take away is to build a plan and stick to it. Set a timeline for your goal and what your doing every six months to get there. Hopefully this approach works out for me. I will find out in five years! :)

I wanted to share my first BRRRR experience, I say first BRRRR because I already own a 3 family, but consider myself a beginner.

So I purchased a 3 family home in the Bridgeport, CT area. It was distressed and needed work. The property had one tenant "paying" rent on a month to month basis. Asking price was 169k.

I did my due diligence along with my realtor and we came up with ARV of about 270k and rental comps of about 1,300 per unit. I had estimated about 40k in repairs, taxes were 6,900 and insurance 2k so the numbers made sense.

What actually happened: I offered 170k since it is a seller's market now in Bridgeport, I budgeted 40k, but went way over my budget and actually spent 62k in repairs. My closing costs were more than I expected, where were close to 8k, but it included 2 points since I used private money.

I am now in the process of refinancing and should close this week. The actual ARV was 285k so that helped out a bit with going over budget. Rentals are as follows: 1400, 1400, 1350 so I am getting more than I calculated.

Conclusion: it is really hard to find a deal where using the Brrrrr strategy you will be able to pull all your money out. In my case after everything is said and done I will have about 34k left in the deal, but month cash flow is about 2k a month (self managing the first year to recoup my investment faster), which amounts to 24k a year. I should be able to break even in about 1 1/2 years although probably sooner since I have already collected 5k in security deposits. At the end of the day it is still a decent return even though I was shooting for getting all of my money out

Lessons learned:

I am a bit more experienced at budgeting rehabs

Learned how to analyze rental comps better

Underestimated my closing and carrying cost, which I will now be able to accurately calculate

When taking a property with a tenant on a month to month lease that should be a red flag. Getting the tenants to leave cost me over 3k plus lost time.

@Jerry Padilla This is a 3 unit held under an LLC

Looking for any recommendation on companies with attractive terms or conditions in the east coast. Thanks

@Wayne Brooks the buyer was able to stop the first auction so a second auction date has not been set. The house is actually being foreclosed by the city for the tax lien. The bank note hasnt attempted to collect the note in over ten years

I need some guidance on how to make this deal happen. I have a seller who owns a property that they are about to lose in an auction due to tax lien, water bill, and a bank note. How can I put this property under contract and negotiate with the bank note before it goes to auction.