All Forum Posts by: Kevin Christensen
Kevin Christensen has started 14 posts and replied 43 times.
Post: Let's discuss the BRRRR process

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48
Originally posted by @Daniel Brown:
Originally posted by @Kenneth Garrett:
Glad to heat your jumping in. The BRRRR is a great strategy for long term wealth.
If you go the residential mortgage refi route seasoning (6 months- 12 months) may be a hold up depending on your lender. You will have typical closing cost.
If you borrow money to buy the property don’t forget to include interest and points on your calculation. If the rehab gets delayed the cost of property taxes, holding cost, utilities, insurance and the appraisal will be held up.
I use commercial financing which requires ownership in a LLC. No seasoning is required. Interest rate is higher 6.25 or so. Much easier to get through the mortgage process then residential. Make sure the ARV has at least a 75% LTV when your done. If better you can then cash out at refi. No money out of pocket and money in your pocket.
I have completed about a dozen BRRRR's in the last two years. Looking forward to acquiring more.
Good Luck.
Thanks Kenneth for the reply! I recently networked with a commercial lender whose rates were 70% LTV at 7.25% over 30 years but with no seasoning period. I've done a great deal of analyzing with those numbers and it's hard to cash flow with that interest rate.
Daniel, can you point me to that lender? Do they report to the credit bureau? Thanks!
Post: Buying 12 single family homes

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48
Post: Buying 12 single family homes

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48
Post: My First BRRRR! With Pictures!

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48
@Cam Jimmy it looks so much better than what I was expecting. You should be super proud and super confident for the next one. What an incredible transformation. Inside and out. Excellent work man. I can't wait to be sharing a story like this. I just put an offer on two different properties yesterday. Congrats on everything man.
Question - How long did it take from start to refinance? I've heard that some places want you to have the house for 6-12 months in order to refi. I'm hoping that doesn't apply if you paid cash.
Thanks!
Kevin
Post: Potentially Our First Deal????

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48
BP,
Here are the facts:
3BR 1BATH - 1500 SQFT
Bank foreclosure
Asking Price 39,900
ARV - 140,000-160,000 based on the comps
I am fairly certain I can get this property for around $20,000. There is significant mold in one corner of the house, looks to be from a roof leak. I am very close to the owner of a professional mold remediation company. So the mold doesn't scare me off as it has many other investors according to the listing agent.
My question is this. Assuming I get the property for 25k (including closing costs), let's say I put 50k into renovations and it appraises for $140k at the end. Would you recommend using BRRRR on this as I could easily get all of my money plus some, even at 75%, or should I flip it and take the cash influx?
Also, because this is potentially our first deal (SUPER EXCITED!!), is there anything else I should be looking for with a property built in 1920 that clearly has water damage?
Thanks!
Kevin Christensen
Post: Hard Money for a buy and hold??

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48
Post: Hard Money for a buy and hold??

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48
Originally posted by @Caleb Jordan:
Originally posted by @Kevin Christensen:
Will the property need a rehab at all? If it is rent ready you could get a HML longer term rental loan at probably 7 to 8%. Then you can still refi ( check about prepay penalty) or stay in HML loan if it still makes sense.
Caleb, what is a long term HML rental loan? I've not heard of those before. I'm very new to the idea of hard money. I understand the concept and how the basics work. But most I've seen are between 10-12% plus some points. Thanks!
Post: Hard Money for a buy and hold??

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48
Thanks guys. Both great information. The property I'm looking at needs minor renovation work, but I will probably do it all myself during tenant turnover periods. @Greg Miller is there something different to refinancing a hard money loan?
Post: What would you do? Help!

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48
Post: Hard Money for a buy and hold??

- Rental Property Investor
- Delaware, USA
- Posts 43
- Votes 48