All Forum Posts by: Peter Fennig

A good thing to do in order to find costs for rentals in a specific part of town/ zip code or neighborhood that you're interested in purchasing is to call the local property managers in that area. Whether they do or don't have anything available for rent, they more than likely still have properties that are currently rented that you can use as a basis for coming up with your cost per square foot on what you can charge

My business partner and I are trying to get a HELOC on a couple of properties, but the conventional financing route is not working for us because neither of us has a W-2 job and our credit score is to low because of lines of credit we used to rehab a number of properties we own over the last year.

Just a few weeks before making it to the closing table on refinancing a couple of our existing rentals that are not livable currently but under rehab, we found out that the refi was dead in its tracks because of our credit score. This has left us scrambling trying to satisfy the current hard money loans on those properties that are due in order to not lose the properties.  The properties were purchased as distressed  properties in B and A locations with the intent of value add through forced appreciation by rehabbing them ourselves. We own and operate our own contracting company and are both licensed contractors and have done this with many other properties prior. The difference this time is that we are out of time and our credit score has dropped significantly over the last year because of business lines of credit that were used mostly for rehabbing other properties. We're now ready to refinance but have 100K in lines of credit that needs to be satisfied or at least brought down significantly in order for our credit score to bounce back and to refinance into longer term financing. 

I guess my question is, what are our options here? Does anybody have or have had any experience in this sort of similar situation? We're in between a rock and a hard place and really do not want to lose the hundreds of thousands of dollars in equity these properties will land us... not to mention the cash flow they'll bring in! We've worked our butts off nearly 7 days a week most weeks for the last 2 years to get here . 

We currently listed three of our properties from our portfolio on the MLS, one of which is in a very high demand part of Fort Wayne that will get us the money we need to satisfy the credit card debt however not quick enough to save the existing couple of properties under rehab that we're trying to satisfy our hard money loans that are due. Any help for advice would be greatly appreciated

@Eric Weldon-Schilling wow, envious much. There's absolutely nothing stopping you or anybody else from any Walk of Life creating the life you want for yourself and for your family. Trying to demonize or categorize everybody under a broad blanket comment like that is just arrogant and kind of petulant. I started flipping houses full time 6 months before this entire pandemic with every intention of building a massive rental portfolio to create generational wealth for me and my children's children. Obviously wasn't expecting a curveball like everybody got with the pandemic, but I certainly didn't cross my arms, quit, and label everybody who what's further along the road in real estate investing as greedy rich heartless animals! In fact I did the opposite and roll my sleeves up, dug my feet deeper into the ground, and continue to push and shove my way forward. Fast forward a year later and I've now got an amazing partner who picks up on the investing side of things where I lack, and starting to get multiple properties in our real estate portfolio as long-term buy-and-holds after flipping six houses in a pandemic. I think it all boils down to perspective and if your perspective is nothing but negative, then that's all you're going to get in return

7+8=15

Drop the 5 then carry the 1

4+2+1=7

Answer 75

@Chaas Linwood

I find that the best way to find out anything is through networking and referrals. Before I started investing I was a full-time contractor and met my current realtor who handles all of my closings through an investor that I was doing rehab work for. He's more than happy to perform searches and pull comps to determine ARVs for me because he knows when I buy and when I sell I'm going to be using him.

All Realtors are not created the same and some absolutely suck at communicating and getting back with you in a timely manner. My advice is to network and talk with other investors and see which Realtors they're using and Trust

Jay Price with Mike Thomas Associates (260) 438-8640.

I have known Jay for years now and he does all my flips. He by far out works any realtor I've worked with in the past and is very used to and great working with investors and most importantly is on point with his numbers and the Fort Wayne Market

Hi bp, I've been flipping for the last 10 months while at the same going through a divorce for the last year and a half. That finally came to an end back in march but severely damaged my credit which was in the low 700's prior to the divorce. I've been in the process of fixing it since May after liquidating an investment property but really do not wanna wait any longer to start building a rental portfolio through BRRRRing! 

My question is what options are there for someone in my position to BRRRR some of these flips I'm doing when it comes to the Refi portion?

Has anyone done anything creative with BRRRR's and a partner who's got the good credit score and W'2 job...and if so what's that contract/partnership look lile?

What's your exit strategy for this small multi-family property? I don't know too many hard money lenders that are worth borrowing money from if you plan on using this as a long-term rental or refinancing the property once it's rehabbed?

Man those are some awesome numbers! Congrats on that first deal...and what a deal. Those are some great before and afters

That's really awesome to read, congratulations on the Investments. You really vamped things up in 2019!