All Forum Posts by: Nate Herndon

Hi @AJ Hoffmann, I am not local but should be able to run this one with a post-closing appraisal. Please reach out to me today so we can discuss details and move quickly if it seems like a good fit.

For sure @Bob Stevens, totally understand. Tough love is good. I agree with you on the 4-unit, hence my recommendation for a basic SFR BRRRR once the liquidity is plussed up a little.

@Benjamin P. it's true what @Bob Stevens had to say, but totally understand that if you are working on limited capital then you have to start somewhere. If you are looking at properties to BRRRR, I would recommend starting out with a cheaper single family home that could use some mild renovation to add some value and make it livable.

Below are two example quotes for some loans I have started recently with lower-valued properties: 1 rehab deal, 1 refinance into a 30-year fixed (post-rehab). I love that you are looking to get started and would be happy to answer additional questions for you.

Hi @Charles Adams, welcome to BP! Sounds like you are well set up for your investing journey with strong credit and a good W-2 job. 

From the perspective of our team here, we utilize soft credit pulls for 3-4 loan programs that have rehab and 30-year fixed financing. However, I don't require a credit pull from a borrower to give a loan quote...I can just take folks at their word for that first conversation. Those soft pulls are good for 90 days, so I love that we can get a one and done for multiple deals across a few months. 

Many of my clients also have great jobs, but many are self-employed as investors. That's what makes the private lending space so great. There is no requirement for you to provide personal income, taxes, or balance your DTI with your next investment acquisition. My clients close in the name of their LLC, so the mortgage is not a tradeline on their personal credit.

Feel free to reach out with any additional questions you have, or post here for the benefit of the group. Again, welcome and what a great first post.

I've seen my clients find success in the following markets for BRRRR properties.

As for assessing deals, I do agree that it comes down to building a team of folks who can support your efforts well. I have some good contacts for building your team in Birmingham, AL and Kansas City, MO if you need some support.

o Cincinnati, OH
o Cleveland, OH
o Birmingham, AL
o Indianapolis, IN
o Memphis, TN
o Southhaven, MS
o Baltimore, MD
o Abilene, TX
o Kansas City, MO
o St. Louis, MO

Hi @Suneel P., your monthly PMI is all that will be removed from your payment. The principal and interest payment will remain the same, but the loan payoff date will be escalated as you make extra payments towards the principal.

The details of your monthly payments should be available on your monthly mortgage statement as it lists the principal, interest, taxes/insurance escrow, and PMI paid that month.

@Jose Morales & @Ashlyn McIntyre, the minimum timeline to use the Appraised Value will be 90 days on your BRRRR. Our team (@AJ Exner and I) utilize three very specific programs that allow for cash-out refinances at 3-month seasoning.

Clients of mine routinely wrap up their rehab within 30-45 days, lease the property to a tenant, and we start the refinance around 60 days into ownership. At that point, we just aim to close within 30 days to hit the 90-day seasoning mark.

Here is an example loan summary for you with that 90-day seasoning program for your duplex:

Single family home = 0.125% rate discount
$100k loan amount or greater = 0.125% rate discount

These are difficult to finance on the private lending side, just FYI. Rehab and DSCR lenders are only interested in "stick built" residential homes.

Hi Gina, shoot me an email. I might have an interested investor that I work with.

Wow, welcome to the forums @Jessica Wieser! I will let some of the seasoned investors here address the "to borrow or not to borrow" question.

I think it's amazing that you have the liquidity on hand that you do, and you have a lot of power with that. I think the responses that you will get will probably range from "scale faster and put down 20% on multiple properties" to something akin to a Dave-Ramsey-mindset.

When it comes to investing, personally, the route that I see as potentially safer when it comes to cash-flow is the diversification of owning multiple properties. If you own 1 property all-cash and lose a tenant, you are out 100% of your returns. If you lose one tenant and you own 5 properties, you are only out 20% of your returns.

That may be breaking things down too simply for some, but it is how my particular philosophy works. Good luck out there!