All Forum Posts by: Matt J.

I'm surprised the rents would only be $950 a month on a $140,000 house. In Duluth, which is not a crazy-high rent market, a 4-bedroom house is generally selling for around $140,000 and the rents are averaging at least $1500 a month. Keep on searching, like others have said, target 1% deals as a baseline and go from there. 

Yeah it seems way too risky to just roll the dice and do it without notifying the lender. Thanks John, have you been able to do this with your lenders? 

@Farrukh Madaminov I have a revocable trust set up, is there any concern with someone going after all my other assets within that trust if I had a rental property within it?

Owning properties in my personal name makes me a little nervous, but the financing terms are just so much better with residential financing for single family than commercial. 

Anyone on here, have you actually had your loan called due after quitclaiming your deed or otherwise transferring the title from your personal name to an LLC?

Analyze 3 deals a day so you start to build the confidence that the numbers make sense in your mind. Have conversations with other investors who've been doing the BRRRR method. Watch some YouTube videos detailing a BRRRR from start to finish.

Overall, spend time on it consistently and the confidence will come! 

Yeah this is what I'm doing, I just think if I'm sending the report to a partner or a lender, it would be nice to break that out instead. Thank you though! 

Am I missing something, or is there not an option when entering in the estimated rehab cost in the BRRRRR calculator to have construction costs not as an out of pocket expense, but as part of the financing?

If not, that would be a really nice tweak to an otherwise flawless calculator. Both hard money and construction loans can finance the rehab portion of a BRRRR so it would be helpful to have this option.

I would get bids from at least 3 or 4 contractors on the cost to repair the columns in the basement. Then you can get a lot clearer range than $8,000-$25,000. 

The seller not agreeing to do any repairs for you isn't a dealbreaker, that's pretty common. But if the repairs needed for the property, if they throw off your numbers, that's your dealbreaker. 

Yeah like @Dalyn Hazell said, just close in your name and eventually you can quit claim it into your newly formed LLC.

Rich Dad Poor Dad is what kicked everything into motion for me. I never even considered that people could earn money without working a job or at least running a business. Without reading that book, I don't know if I ever would have started doing any real estate investing. 

Other books I've liked - 

Millionaire Real Estate Investor 

Think and Grow Rich 

The Magic of Thinking Big 

The 4-Hour Workweek

Buy Rent Rehab Refinance Repeat