All Forum Posts by: Mayank S.

I have done one BRRRR in Indy with the help of my TK provider. He was helpful enough to wholesale the property, got the renovation done through his contractors and renting out (inhouse PM). This all came after building a trusted working relationship with him as in this approach he didn't make enough but wanted to help me scaling up my rental portfolio and diverting from buying turnkey to BRRRR strategy. I would say if you already have some trustworthy local connections like local TK provider,Realtor,wholesaler etc, start from there.

I have used Alan Peterson from Housemasters. He has done a decent job!!

@Account Closed I like doing things my way where I have some control over what price, how much rehab and what budget to set and having an oversight of how things work on a grass root level. These things are missing on TK side where you just go and buy product after some due diligence and start getting returns. One thing that really is huge for me is equity right off the bat when doing BRRRR vs TK which mostly leave no meat on the bone and sell at market price. That gives some downside protection too and after six mth to a year seasoning, get all the investment back via cash out refi. Retrun wise, I have not held properties long enough to say one is better than others, both are doing equally good but BRRRR has good equity than TK for sure...

Both have its pros and cons. I have experience in both and given a choice and time by my side, I would do BRRRR instead of TK. You have to make a call what's your time worth as BRRRR is active and involving vs TK which could be complete hands off with all the ducks aligned by the TK provider. you just have to collect rent from day of closing...

If someone is newbie and have some time crunch but have cash to spend for DP, I would recommend going TK route to get some landlord experience (it's not completely passive as masses think), then slowly build a network, working relationship with that provider and other key people in the target market and then plunge into BRRRR side. One thing to remember BRRRR works when you buy distress properties to some degree and that may mean financing eligible or not, in that case it is purely a cash deal. Hope this helps!

@Charlie Fitzgerald its a conventional loan lender not HML or PML. I think it is safe to state that I will use funds partly to pay off HELOC and rest as reserve for buying more properties.

Cash out refinance loan that I am working with my lender, his underwriter has approved the loan however requested some of the documentation. I can provide all of them however there's one in particular that I am willing to take anyone's advise :

- Need a letter from you stating what your intentions are for the cash-out proceeds that you'll be receiving from the loan refinancing. 

I used Heloc fund on my primary home to do BRRR here. SO my intention is to get all the invested money back (purchase+ rehab+holding cost , subjected to appraised value ofcourse) then return the money back to the line and extra fund back into reserve and wait for the next opportunity to buy, basically rinse and repeat the process. Is there any red flag here that bank is looking to deny the conditional loan approval or not risking their money into another real estate deal? Just checking if anyone in similar situation and what response did they provide to the bank.

Did you check with Geico? You can try your luck there but you should have atleast your car insured through them. Good thing they didn't force me to transfer my personal home into their policy and got umbrella coverage for primary and 4 rental properties. If I recollect they mentioned max 4 rentals they cover beyond that it needs to be covered through commercial policy.   

@Claude Robinson III  there are plenty to choose from however I have had great experience with @Ryan Mullin @Ashley Mullin company. Company served by great team and one stop shop turnkey from acquisition to PM.

You can check out others on turnkey-reviews.com as well.

@Shaun Palmer typically the seasoning period for some banks is six months, for others it may be a year. If you are planning for cash out refi then it has some limitation on number of mortgages on your name. I believe if you have six or more mortgages on your name then cash out wouldn't work due to limitation imposed by Fannie.

There is something else called delayed financing exception that doesn't have any seasoning period requirement or other limitation, you can refinance immediately after buying and rehabbing the property. The only main difference is the LTV that is permissible. In cash out ltv is based on appraisal value however delayed financing allows financing 70-75% ltv based of the purchase prices. I am not a lender however @Jerry Padilla is a great resource and lender who can clarify the question in detail. check out this link:

https://www.biggerpockets.com/blogs/5110/42824-all-about-delayed-financing

You can use HELOC or any other fund to buy the property for cash if that's what you are asking.

@Ryan Mullin @Jennifer Roberts @Ashley Mullin 

Great and very investor friendly. You can reach out to them.