All Forum Posts by: Michael Brindley

Thanks George, your advice is really appreciated and your right, we need to change our mindset and be thinking of cashflow and investment longer term. We are just about to buy a house on land we want to also develop later down the line, so we are buying, refurbishing and renting and it should cashflow $500 month.Our property and land will increase in value, capital decrease and all works very well with a longer term vision, so that's what we need to do.

Thanks Joe, all makes sense and we are just now about to buy and BRRRR, lets hope we get it right :)

Thanks Greg, great advice and i've just sent you a quick thank you note. Really appreciated the advice.

Hi, Bigger Pockets Members, we have just hit a little dilemma, and I'm wondering if anyone has any advice. We have just started in Property Investment and only flipped one house, but we have just come across an opportunity to buy a home that needs work to BRRRR, but the property sits on 2.5 acres of prime development land, right in the middle of a town that is just exploding with development, has excellent schools, a fantastic downtown, and people just want to live in this place ( and so do we, hence why we are moving away from Florida and back to Ohio ) . My wife's parents own the adjacent 2.5 acres, and we have already agreed to buy their property/land within the next few years, then we'll have 5 acres. I am a design professional, my wife's a realtor, and we have already looked into planning the area. From our plans, we can build ten houses on this plot, and if we do this right, each custom house will be worth between $450K-$595K depending on lot size and position. I believe after paying all costs we'll profit $1.4M. The questions are, should we :

1. Buy the house, sit on the land, BRRRR it and develop say 10yrs down the line when we are ready, have our own money and know more about Design & Build

2. Develop now via design and build off plan, building one house at a time

3. Approach a hard money lender and go for it.

As a note, the seller knows the value of his land and is sticking fast to a $30K price over what it is worth right now, but my gut says, pay it, BRRRR it and come back in 5yrs and develop, paying $30K over list price now will mean nothing in 5yrs time and the land will only increase in price due to it's position to schools, parks and downtown.

Any thoughts anyone?

Thanks Brian, that's what I was thinking but needed someone who knew what they were doing, so really appreciate the answer. It's all about getting the purchase price as low as possible to account for the 75%..simple really, find and or make that purchase deal, or rehab with min cost I guess. Cheers Mb

Hi Everyone, I have 30yrs as Senior Creative designing interiors/retail/commercial and hospitality spaces all over the world and made a lot of clients, serious money and I don't know why it's taken so long to wake up and smell the coffee, but here I am, tired of selling my skills to benefit others...So, one stumbling block for me right now on the BRRR method, the numbers don't seem to add up in my head on the refinance part and I think I'm being super stupid here.

If we take the typical example and do the 150K + 30K purchase/rehab and it's worth 220K when it comes to the repeat refinance, you get say 160K; you/investor just lost 20K !!!! Yes, it rents out, and you flow say $295 month and property over time increases in value, but it would take 5yrs plus to get back the 20K you've just lost ???? 

I think I'm not getting it, so need someone to say ' hey, stupid' this is how it works..help and advice here would be appreciated...My other choice is to flip and take the money into the next deal, but I do like the idea of 'Oil well's' just pumping cash flow each month, but again, I can't get over the 20K loss, and I'm sure an investor won't either.