All Forum Posts by: Naveen Kumar

BRRRR is just that - unless you are able to Refinance to pull out your down-payment and Repeat, it is a simple buy-and-hold.

Here are some things to look for:

a) Undervalued properties

b) Fixer-uppers that need some work

c) Motivated sellers (you will see it in the listing description)

d) Be ready to move quick

Keep us posted on your progress.

@Michael Beeman - according to the FM guidelines, you are eligible to cash out refi in 6-months. In case you want to do it earlier, you can use the delayed financing exception, limited to 70% of actual cost. 

That being said, there are banks that have overlays on these guidelines, and hence the confusion with the seasoning period requirements and cash out refinance limits.

It is doable, I have a lender who is more than willing and able to work with the actual guidelines.

Shouldn't you add the mortgage payment as an expense, or am I missing something?

@Ahmed Salem - Welcome to BP. I am sure you can find investors who would love to partner with you on such efforts if you have good and affordable contractors.

Feel free to reach out and good luck in your journey. 

You can set it up in your home state, and if you want to own properties in DE, and any other states, you file a Certificate of Authority in that state.

Any recommendations or guidance?

Thanks for volunteering your time @Marshall Butler. You are right - there are so many of us here trying to figure out the way banks work from the inside.

I have a few questions:

a) If someone cannot go conventional, due to BK or foreclosure in the past, is it possible to get a commercial loan on a multi family, less than 5 units?

b) Is there always a seasoning period a in a BRRRR deal?

c) Is it possible to get a HELOC before the seasoning period is over, on the market value

d) After the seasoning period, is getting financed at the ARV, or market value, a sure thing?

Thanks for your time.

Looking for a reliable contractor or general handyman to start forging a relationship with: rehabs and general maintenance for buy & holds. 

@Phil LeNeveu Ditto to what @Rod Joseph said. Keep in mind that with turnkey property you might be getting a good price, and a lot of fixes done by the management. This will help with your Capex reserves and cashflow.

Even if you choose to go the other route, you should consider hiring a competent PM if you are an out of state investor.

Thanks for your insight Russell and Andrew. 

My goal was to buy-and-hold-and-PM it out for a 5-7year timeframe, and the numbers looked good on paper. 

Looks like I have to reevaluate my strategy.

Back to the drawing board, I guess.