All Forum Posts by: Kristian Conway

So I am about 75% through my first true BRRRR deal and my last bit of funding has fell through. I made the mistake of buying the house using a conventional loan and have funded the rehab through a combination of personal capital and 0% APR credit cards. I've learned a TON through the process especially what not to do and what I will do better on the next deal. The cash-out will not only cover the renovation expenses but leave me with a conservative $10k in cash for my next deal. HOWEVER, now I am stuck trying to get over that hump to get enough capital to finish the deal. I am looking to most likely do a HML, however, I have struggled to find one that will do such a small amount <$10k. My credit score was very strong prior to the deal but has taken a hit due to the credit cards, so I am looking to avoid more credit hits if possible.

Any ideas or options?

@Will Gaston Thanks for the advice Will! 

Hey Dana! I checked out the link and your renovation looks amazing! I'm currently in the middle of a BRRRR in Germantown! I'm not sure what areas you are interested in but I know in my areas and target niches of Louisville, I'm looking at all-in prices of $150-175k, however, that result in an ARV $230k+. To be all in around $100k, would be tough but definitely doable all dependent on your target market. Personally, if I had that capital I would take one of two routes:

1) Combine that capital with a hard money loan and get a good BRRRR deal in a desirable neighborhood. You can find good deals by targeting distress!

2) Look into investing the capital in a different city where $100k all in takes you a lot farther. This may help you compound the capital until you have enough to invest in Louisville. 

I hope this helps! Go Cards!

Awesome thread @Will Gaston! I've got a page full of notes! One of my biggest questions that i'm tossing around in my head is SFH vs. MFH. I have a duplex that is a student rental and it seemed to be much harder to rent than my SFH simply due to the fact that another group was living in the unit upstairs. It seems like the students i've dealt with are willing to pay a premium to have their own place and yard. I want to scale up, however, it seems that SFH is the stronger asset in this niche until you can expand to the A+ developments.

To scale in this niche would you recommend increasing your portfolio of SFH homes and then transferring your portfolio into higher end MFH in the future?

Thanks so much for the value!

My truck is my daily driver and helps a TON with my rental properties. However, that's because I'm plagued by the country boy attitude of "I can do everything myself". My advice to you and to myself is establish systems to where you have no need for that truck. Don't buy yourself another job like so many (myself included) have done. Scale up and only do activities that are a good investment of your time. This is an area where I am trying to grow myself and have my business work for me! I'll always have a truck but soon it will be to pull a boat instead of drywall! 

I think it all comes down to Kiyosaki's concept of asset and liability. If you're going to take on large debt, make sure someone else is paying it for you. You can buy liabilities such as a personal home as long as there's an asset paying for it! 

From my experience, its all about building the interpersonal relationship before any business relationship can occur. You build rapport and trust between each other before anything about partnering is ever mentioned. I would HIGHLY recommend reading/listening to "How to win friends and influence people". The book is literally life-changing not only in business but just in general life. It's a people business and you have to build relationships. Don't worry about being introverted, be yourself and relationships will grow organically! 

It's also so important to always voice your plans to like minded people. If your goal is to buy a rental property, voice that goal to people you meet. Not only does this benefit you psychologically by optimistically concreting the thought in your brain but it also can naturally find you the necessary partners. (Lookup Brandon Turners story about the mobile home parks and Ryan Murdock)  

What a story! I called for months on a property and never could get through. When I finally got ahold of the owner, we talked for a while and he said he didn't want to sell, rather he still wanted to rent the property and just hadn't been able to get out to the property to put up a "For Rent" sign. So I volunteered to put the sign up for him to help him out and hopefully build rapport. Bought a sign, put it in the yard and sent a picture of it to him to confirm it was done. Went home feeling good about myself, thinking I had made some progress. Got a text and a phone call from the wife RIPPING me about how the house wasn't for rent and they actually plan to tear it down. Talk about a smack in the face lol. 

HOWEVER, I now have the wife's personal cell and will be calling in a month or so to check in. 

In situations like this and in yours I always think back to the quote "Make mistakes of action and not mistakes of sloth". Take your shot and if it doesn't turn out, it was good practice! 

Piggy backing off @Andrew Postell, definitely look into BRRRR! If the property has any value-add opportunities, you could go hard-money, increase the value of the property and then refinance into a long term loan, paying off your hard money. This allows you to make a cash offer with the hard money, giving you the opportunity to negotiate a lower purchase price. Once you refinance, your down-payment is wrapped up into the LTV and if all goes well, you can actually pull cash out of the deal. This cash then becomes the down payment on your next property, in which you rinse and repeat! Ofcourse, you have to do your due diligence and find a good deal from the get go!

Definitely recommend reading/listening to David Greene's BRRRR book!

First off, awesome work at such a young age! I wish I had started that early! One option that I used at 24 was partners. I found two like-minded buddies and we all went into partners on a deal. Also, have you explored the options of hard-money and then BRRRR into a traditional mortgage through a local bank? Keep pushing for seller-financing as well!

Main thing though, instead of "I can't afford it" think "How can i afford it?". There's always an option out there! Sometimes its as simple as not taking "no" as an answer from a lender.