All Forum Posts by: Kristopher Russell

Thanks @Account Closed! Looks like I need to align with some builders!

@Greg Dickerson thank you so much for the feedback! I will do more research on lenders before going forward. 

I'm currently working on my first real estate deal! To keep the details simple, I acquired 7 acres of land (for an insanely cheap price) with only one structure (a house with tenants who are permanently vacating the property in a few weeks). The property is within a nice middle class residential neighborhood and only one mile away from a small private university. While the house on the property is free and clear it needs a ton of work for it to be rentable. The plan is to get a home equity loan to cover the renovations (possibly convert to a duplex). 

Here is where the BRRR comes in. I'm thinking get a renter in the property after the repairs, and the seasoning period refi again against the new ARV and use that money to fund the build for next property. If done correctly, I should be able to pull roughly $100k based on the comps in the area. Of course, I have to come in at budget for the repairs.

I see this as a possible strategy to build a few homes, BUT I still have so much land left to utilize. I really, would like to find creative ways to hold on to the land but partner with other investors on building structures if possible. I'm not against subdividing the land but I want to hold on to as much as possible and focus on income/cash flow then a payout. 

I have tons of ideas but being my first deal I want to make sure I am seeing everything clearly.

Experienced investors, what are your thoughts? 

@Theresa Harris They've been there for quite some time. We just acquired the property officially today.

@Theresa Harris Thanks for they feedback! They are not paying any rent at all. I'll look into the cash for keys option. LOL! Large friend, I'll keep that in mind.

Long story less long..

I was able to negotiate the acquisition of a property by offering to pay the delinquent taxes on a home/lot in exchange for a deed transfer to me and my partner (free and clear title and no mortgage) from a long distance property owner who was not very motivated. 

Here's the catch! There is a tenant who is currently on the property that is not under lease with the old owner (and will not be placed on a lease with me [another topic for another time]). 

The property needs MAJOR repairs both internally and externally. A lot needs to be cleaned up in the yard. Plus its a pretty sizable plot of land.

HELP! I know I need to evict but are their other options that I'm missing? Should I start the eviction process immediately? There is no lease tying the individual to the property. How expensive can an eviction get for basically a "squatter" that was never under lease? 

More importantly, how do I insure the property? 

This is literally my first real estate deal ever! I'll go into more details on this soon!

Thanks!

Congrats guys!

@Tim Swierczek I am more than grateful for the information! I'm on it! Thank you!

@Tim Swierczek I greatly appreciate the clarification! @Nicole Heasley Beitenman thank you for the follow up as well! 

These insights are definitely valuable. My main takeaway from this is do a ton of research on lenders, not just for the FHA for the initial deal, but for the refi as well. I'll start with the local credit union in my home town and go from there.

I will let the numbers dictate how to move forward with the BRRR but the first step is securing the first deal!

The hunt is on! Thank you both!

@Nicole Heasley Beitenman again, your insights are greatly appreciated!! 

I did some research on the 203k and so far it seems like more red tape to maneuver through, however I haven't ruled it out as an option. 

I've been looking comparing FHAs to Conventional 97s and they seem to be pretty similar. I'm looking to BRRR with as little down as possible but I'm concerned about the "seasoning" period lasting at least a year and slowing me down from getting deal number two.

Maybe I'm getting ahead of my self and but it's difficult not to look beyond the first buy! 

I am more than grateful for your feedback! Happy hunting!! Thanks again!