All Forum Posts by: Nick Dunin

@Sharon Tzib

26% fall in SFH rentals? Yikes

@Stephen DeThample

That’s what I was thinking. Thank you

I dont know how you guys do this!  I went and looked at a distressed property that was listed on MLS.  It was in much worse condition than the pictures.  Im talking tens of thousands of dollars more in damage that wasnt shown.  How do you handle situations like this?  Do you make all offers on sight unseen contingent to an inspection?

@Jay Thomas

I’ve read that local banks are more flexible then national chain banks. I just called and emailed several around town. The best deals so far have been credit unions. The one I mentioned is east Texas professional credit union

So I’ve been researching for the past while and finally got the ball rolling. I’m looking at doing brrrr strategy. I’ve spoken to a couple local banks to figure out financing options and I was surprised how investor friendly the options are...

The best one was 10% down and they’ll finance 90% of purchase price and 100% of rehab costs, as long as you end up with 20% equity in the home. Which is what we want anyways, right! All of it can be rolled into a 5 year adjustable rate mortgage for 20 years. First 5 years at 5%

With terms like this why would anyone use hard money or private money lenders? What am I missing?

@Steven Hershey

Congrats on your first deal.... I’m right behind you searching for my first.

So I have a good understanding of brrrr investing and how you can get your money out to keep buying more. But what about if you have an opportunity to buy a rental property at or near appraised value that doesn’t need any work but the cash flow numbers work. I’ve got cash for a down payment but without being able to get that money back out like you can in a brrrr it would be a very long time before I can buy my second property. Is there another way to that I’m not aware of?

I have a primary residence already and won’t be able to house hack, and would rather not cash out equity of my primary.

Thanks

@Elise Marquette

Thanks for the reply Elise. Is there a name for the type of loan you’re talking about for the short term rehab? That sounds like what I’m looking for.

@Dylan Osmon. Thanks Dylan. Wouldn’t fha loan require sometime of inspection to qualify the house for that type of loan. So if a house is in disrepair, would it pass?

Im a REI newbie. I'm ready to start searching for deals, I'm considering brrrr for SFH and MF. But I feel like I need a better understanding of all the financing options available. What's recommended for a beginner? Will a local bank loan to buy a fixer upper plus give additional money for the rehab? If so, is that considered a commercial loan? Is this the best option? I've read some

About hard money, is that a better options?

I have steady income (w2s), I have cash in the bank to have “skin in the game” but would really like to get it out after refi do keep doing deals. Any advice is appreciated