All Forum Posts by: Matt Cruz

Awesome, thanks for all the replies!  @Nathan Click I'll be in touch!

@John Broussard that sounds good.  Credit score will be no problem for me, and I do have some money set aside already for my first investment deal, but I also wanted to weigh the options of using hard money loan for everything, and then just dip into my personal funds if it goes over budget.

@Lisa Misuraca couldn't he still do the BRRRR with no working capital? IE; get a hard money loan for purchase price + rehab, and later one once he refinances he can possibly get all the money out to pay off the loan. Then depending on the deal he may still have equity in the house and a positive cash flow rental.

I guess I'm confused as to why he could do a flip with no capital, but not a BRRRR

Hey man no problem. Glad I could lend some advice. Sounds like I'm in a similar boat. I'm looking now at my first investment property, so I've been reading up a lot lately on BRRRR and the financing part.

"BUT, why then wouldn't we save ourselves work and buy distressed properties and rehab them, then refinance them to get back what we put into them and then start renting them."

What you just described is the BRRRR method.

Right now are you just looking to build some working capital?

Flipping and BRRRR both have their pros and cons. If you flip and sell it the same year, just realize you won't have the same tax benefits if you were to hang on to it for a few years. If the deal is right, BRRRR is going to give you immediate equity, positive cashflow, and avoid some of the taxes by holding on to it for a little while.

Hello Everyone,

So I have started looking into potential BRRRR deals in my area, and ran numbers on a few. I'm starting to get to a point where I find one that looks to be a good investment, so if I was 100% ready, my next step would be to take my GC over there and estimate the rehab cost.

The main part that is holding me back is my lack of knowledge with the Financing part.

Where would be a place to start for me seeing that this would be my first investment deal?  My wife and I own our current house, and it's actually in just her name.  Will that play into my favor when getting financing for this deal, or do I need to get my name added on the mortgage?  I guess I'm a bit confused between the different financing options I would have available.  I'd like to get a loan for the Purchase price + rehab costs.  I do have a good chunk of change in savings as well if needed, but for my first rehab I'd like to only dip into that if the rehab goes over estimated cost.  Credit score is around 780's right now (not sure how much impact that will have).

Matt

Awesome, thanks @Terri Christie !

Thanks for the warm welcomes!  Look forward to my time here.

Luke congrats with selling the biz and moving to NC!  Do you know what city you are moving to yet?

Hello everyone!  New member here currently living in Goldsboro, NC.

Little bit about me... 27 years young, been married for 2 years.  I'm a self-employed Insurance Agent (commercial focus).  I was looking into different ways to invest and I stumbled on this gem of a website.  Hoping to buy my first investment property within the next 12 months.  I've been lurking around the site for few months now, but I figured what better time than now to get serious and buy a Pro membership.

The area I live in is a military town, so rentals are everywhere. BRRRR strategy looks like it will work best for me in my area.

I have some money set aside already for my first purchase, but I still want to educate myself on all options with lending, refinancing, etc so I am 100% prepared going in.

I'm all ears for anyone that is willing to lend some advice. Currently don't have access to MLS so it sounds like I need to start doing some networking, or find other options? Does anyone use http://biggerpockets.foreclosure.com/?  Doesn't seem to be included with the pro membership.

Look forward to networking with you all!

Matt