All Forum Posts by: Nandy B.

How did the BRRRR with the AIO workout for you?

Can somone offer insight All in One HELOC? or It' s a 1st position HELOC?

I have a property in TX that doubled in value and because of TX strict rules I cannot do a regular 2nd position HELOC on an investment property. I also dont want to do a cash out refinance, as I want a revolving loan.

An all in one HELOC allows you to pull out about 70-75% of the appraised value of your loan which in my case will be about 200-225K depending on the final appraised value. I intend to use the money to BRRRR a few properties in TX ( where I currently have 2 SFH).

Based on current understanding....The interest rate will be higher than my current loan but it will allow me to grow my portfolio faster and increase my cash flow even more. 

I feel like i am well positioned to handle this calculated risk. I am a high income earner currently cash flowing about 5K per month between my full time job and my business. I have been investing for 7 years ( 1.5M portfolio, gross about 120K per year). I have managed big remodels and I have personally renovated my first home. 

I also know how to invest remotely. I have learned so much about the business, the only thing keeping me from growing is the more funds. 

 I am skeptical but after reading more about it, it seems like the right opportunity for me to grow my RE portfolio. 

Would appreciate your thoughts especially if you have leveraged this tool to grow your RE portfolio.

2 COMPLETION DATES IN REMODEL CONTRACT.

I am doing my first remodel. I signed the contract, read it as thoroughly as I could but missed something in the fine print.

On the front page, it states a completion date of Dec 14th, 2021, the date he used to get me into the contract.

However, in the fine print somewhere on page 4. He gave himself a completion date of May 2022. 

There have been lots of delays, and also lots of deceitful practices. The delays are costing me extra in rent. So they are a problem, but an even bigger problem is the VERY POOR quality of work and lack of supervision from the GC. He sends subs on site who don't understand what needs to be done and do not complete the work on the day they are sent. So the GC doesn't understand what work is left to complete. He keeps making me promise that it's only 4 more hours. When I go to the site, I see that it's at least 3 or 4 more days.  

I am looking to hire a lawyer to cancel the contract. I won't be in consultation with one until next week, until then would appreciate your feedback. 

Be easy on me, this is a big learning opportunity. Knowing what I know now, I would do a lot of things differently especially having a lawyer review the contract before I sign it. 

 The space will be primarily used for laundry, storage. I plan on converting it into a living space in 1 yrs. 

I will much rather direct the money elsewhere. 

thanks

This is great.

I wonder if anything has changed in the past 12yrs?

CONTRACTOR BID FOR A BASEMENT - The space will be used for storage, laundry only. 

Location: Denver CO

BASEMENT 729 Sqft
FRONT DOOR -- Remove and replace front door with customer supplied door & lockset. Price will increase if frame needs to enlarge nor decrease to accommodate new door. $995.00
BASEMENT ENTRY -- Drywall and finish framed stairwell and door area entry. Customer to supply drywall. If additional framing is required price will increase to accommodate exposures of needed attachment. Paint walls and add a switch with a light.$1395.00
BASEMENT WALLS --  729 SqftPatch cinder block & Brick holes using customer-supplied premixed mortar. Spray all walls white using customer-supplied paint. $2,675.00
BASEMENT CEILING -- 729 SqftReattach electrical wiring and spray using customer-supplied paint.$895.00
WINDOWS -- Seal all windows with OSB & caulk to seal completely. Fasten dryer vent.$465.00
EPOXY 729 Sqft-- Prep and clean basement floor. Apply commercial grade sealer and epoxy per client color selection, includes non resistant surface finish. $2,325.00
ELECTRICAL - Run electrical for and install four receptacles, one 220 with a direct circuit and switch at front door.$1,255.00
PLUMBING- Plumb in utility sink water lines and drain line. Install customer-supplied sink and faucet. Includes Studer vent per code. $1,275.00
GARBAGE & CLEANUPRemove all garbage throughout job and dispose using trailer or truck. $365.00
Total $11,645.00
Cash Discount -$645.00
Grand Total if paying in cash $11,000.00

Note: 

• I already hired a handyman to clean up the basement and get it ready for this work. 
• I hired plumbing to set up drain lines for the washer and dryer I just forgot to ask for the install of a utility sink. 
• There is existing electrical in the basement. 
• Drywall Entry  -- a small section of the front entrance

Other Bids were $1750, $3400, and $8500.

Hi Syed, 

Are you looking for opportunities locally only, or are you considering long-distance investing as well? 

I know that long-distance is a challenge. If you have family or friends who live out of state, maybe consider looking into other more favorable market ie the midwest.  

I am currently in Denver and this market is growing too costly for me. So I am looking into Kansas and Oklahoma. My parents live in Oklahoma and my mom's sister lives in Kansas, both markets offer great opportunities to meet or exceed the 1% rule for buy and hold investing. 

Whatever you chose, do not give up. Keep looking.  

did you have a contractor walk through the property?

I would suggest getting 2-3 contractors to walk through the property with you. 

Hi Zachary, 

So proud of you for what you are doing. I wish I had this mindset at your age. 

Do you have a steady income?

How many lenders have you spoken to? You have to sometimes be very very persistent in real estate. 

I will also suggest you house hack your first property. You might get a better chance at getting pre-approved for a loan if it was a personal residence. You can put down 3.5-5% down. If you can make it a duplex it will be great. IF not, then the more bedrooms you have the better. You can rent all of those out, make extra income, gain some experience owning a home and show lenders you can be trusted with a home loan.  

Ouch!! I don't think I agree. There are plenty of great people who have found their success and may have retired from actively investing. Their knowledge is valuable to newbies or semi-newbies like me. 

I do think that one has to be very very careful when it comes to courses and mentorships though. 

1 - check yourself, why do you need a mentor? if those mentors weren't there will you have the courage to spring into action? Mindset is everything in real estate. There is no elevator to success. You will have to suck it up and grind. Yes! you will make mistakes, you will lose money. IF you lack the guts and courage to take action, with or without a mentor you will struggle.  

2 - The best time to hire a mentor or a coach is with some experience under your belt. I have 2 master's degrees, 1 bachelor's, 2 minors, 4 certificates. Beleive you ME!!  Classroom head knowledge is not a substitute for experience built thru practice over time.  

3 - Real estate investing is very personal. there are hundreds of strategies and options and ways to invest. YOU and only YOU will know your risk tolerance. This comes from actively doing. No mentor/coach will be able to tell you what yours is. 

So in conclusion, first - get some experience with anything, buy your first property, then a second one, or partner with people who are buying properties in your local REIA. Set a time frame and discipline yourself to gain some experience in that time frame 6 months to a year. Then if you really feel like you need a mentor/coach. Go for it! You will at least be able to article what YOU need from THEM.