All Forum Posts by: Luis Moreno

Hi Mark,

I read your message and spoke to 3 other investors that have used this line of credit before. It's a commercial fix and flip line of credit that starts at 500K as long as you qualify. Turns out my property manager has used this same fix and flip line of credit and gave me the thumbs for it when i asked him.

My property just went pending after two days on the market for $7,500 over my asking price. The property was in Lawrence and yes I will be using the fix and flip line of credit to build up a portfolio of BRRRR properties and save tax money on those.I will be paying the capital gains on this property so that I may qualify for the $500K line of credit. I spoke to my CPA and she has a great plan for me to reduce the taxes I owe because of the amount of write offs we have so far. I'll definitely write about my experience going down this path.

Hi BP members,

After learning about the BRRRR on bigger pockets I reached out to an investor friendly lender I was referred to and asked him if he had any loans geared towards investors? He said he did have a line of credit that would fully fund the property purchase and construction cost and I would just need to fund 10 percent of that amount. I would also need $50K in reserves and show proof that I either bought or sold 3 properties in my business. Then my lender would be able to refinance the property in three months as long as I had a tenant in place for one month.

All I needed was to come up with $50K, so I spoke to my wife about selling one of the first rentals we bought since the markets went up and we owed so little on it. We decided to call a ton of contractors until we found David who works strictly with inventores like myself. He completed the walk through and had a line by line itemised excel sheet with the quote sent to me in 2 days. A bonus to using David's company was that we didn't have to pay anything upfront until the entire project was completed and to our satisfaction. We were told it would take 4 weeks to complete and the crew could start within 24 hours of signing the contract. Three weeks later the entire project was completed and ready for the pictures to be taken. Our Agent is working on posting the property on the MLS right now. We had new windows installed, kitchen and bathroom gutted and put together, floors re-done, paint throughout, and landscape completed. If the house sells for our asking price of 120K then we will make a $55K profit. As soon as that profit hits our account we will be ready to get the line of credit and start buying wholesale deals to BRRRR. With the speed of our new contractor I believe we can complete the renovation under a month, get a property rented and then refinance under 4 months. I'll start posting before and after pics of the BRRRR properties I buy.

If there are any out of state investor’s that need boots on the ground or just connections to get their portfolio started feel free to reach out to me with a private message and I’ll help out.

Hi @Martin Tam and @Sarah Oladokun,

I will message you guys the info and hope you guys enjoy their work and service as much as i have!

Best Regards 

Hi @Morris Cohen,

I'll Private Message you my contractor's info he has framers and a fully staff crew ready to start within 24 hours of signing the contract.

@Rich Ramjatan I hear where your coming from and i would agree with that general idea, but David has been in business for 8 years using this model and he's built up to 32 crew and his company is fully licensed and bonded. They do around hit 4 to 5 million dollars worth of work per year. His crew is fully licensed to do anything on a home from start to finish. He does well working for property manager clients who buy and hold, BRRRR or flip. Before he starts any any project he verifies proof of funds with his clients and he has a 60 million dollar line of credit to float any project for his clients. He also has accounts with all the big name stores like Home Depot in the area. This guy is the real deal and growing bigger. Im sure he's fully layered up for any bed eggs that try to take advantage of him. His relative owns the biggest concrete pouring company in Indiana plus other states. this guy doesn't run his company because he's in it for the money. He's well off from another company he built and sold. He is genuinely passionate about working with investors and creating a company that won't screw them over like other contractors do. I used him and couldn't believe how great my experience was. He finished my flip a week ahead of schedule and that with me adding more to the original contract that should've pushed them back, but it didn't.

Investment Info:

Single-family residence fix & flip investment in Greenwood.

Purchase price: $80,000
Cash invested: $175,000
Sale price: $240,000

Punched property with the intentions of using the BRRRR strategy. Unfortunately the house was 200 years old and had some serious issues. Reno cost's went up and eventually we had to fire our contractor. so we had to spend an additional $40,000 plus to get it done and up to code. Luckily after we finished the house the market went up about $60,000 in that area and i minimized my loss by selling at $240,000 instead of $180,000. took a $15,000 loss

What made you interested in investing in this type of deal?

distressed house for $80K in a $180K market area. mistake was using a bad contractor

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

private money

How did you add value to the deal?

added 2 bedrooms and full bathroom. also created a better layout and flow of the house.

What was the outcome?

a lot of lesson learned and i improved the team of pros around me so not i can by and fix any home fast and up to code.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

yes my contractor and property manager. Private message me for their contacts

Investment Info:

Single-family residence fix & flip investment in Greenwood.

Purchase price: $80,000
Cash invested: $175,000
Sale price: $240,000

Punched property with the intentions of using the BRRRR strategy. Unfortunately the house was 200 years old and had some serious issues. Reno cost's went up and eventually we had to fire our contractor due to the it taking 9 months without finishing. We had it inspected and found out the most of the work was not up to code. so we had to spend an additional $40,000 plus to get it done to code and insure the home was safe to sell. Luckily after we finished the house the market went up about $60,000 in that area and i minimized my loss by selling at $240,000 instead of $180,000. a lot of lessons learned and my next flip i started the day this one closed it took 3 weeks to complete and its going to produce a solid profit.

What made you interested in investing in this type of deal?

distressed house for $80K in a $180K market area. mistake was using a bad contractor

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

private money

How did you add value to the deal?

added 2 bedrooms and full bathroom. also created a better layout and flow of the house.

What was the outcome?

a lot of lesson learned and i improved the team of pros around me so not i can by and fix any home fast and up to code.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

yes my contractor and property manager. Private message me for their contacts

Great @Julio Garcia i'll check it now

Hello bigger pockets family,

I found a great contractor i found who has set up his business to tailored investors who buy and hold,BRRRR or flip in quantity.This contractor has multiple crews, can start your project in 24 hours of signing the contract and gives you a detailed spread sheet of the bid brake down line item by line item. One of the best parts is if your rehab project is below $60,000 then you don't pay anything until the project is complete and with a final walk through with you. If theres any problems you find or spot on the walk through they will fix it before you pay anything and are satisfied. if your interested in this contractor let me know on because my last contractor almost ruined my business but this one is great. i want to spread the word because i don't want any other investor to go through the nightmare i went through on my last rehab project. They do work around Indianapolis and only work with investors. They also have a brokers license so they can help out of state investors like myself buy property and fix them up right away. My last flip with this contractor took 3 weeks from start to finish and it cost $26,000 but im going to make a profit of $55,000 when this house sells soon because my agent already has a buy and hold buyer lined up for it.

@Twana Rasoul,

Thank you and even though it was a rough situation I knew I was going to eventually acquire a property that would be a problem and a learning experience. I wasn't too happy at first, but when we started noticing that we got better at solving the problems day after day until finally the project was complete. My fears of bad foundations, roof replacements and more are all gone because I found people and companies that could help solve those problems the right way in the future. Now with that lesson I feel like we are a better ran business because of it. This next flip after the nightmare property we started 3 weeks ago is now complete from top to bottom. We should profit $55,000 from it. My agent already has a buyer lined up before the home hits the market. I know that almost all great businesses go through their own challenges and hiccups and this was our mistake that could of ended badly if we didn't persevere through the challenges.