All Forum Posts by: Don Nelson

@Richard W. - Dallas or Denver?  Maybe you had a typo - sounds like a good plan.

@Richard W. - I have a pocket duplex listing in commerce city.  If interested, PM me.  And I can help with this search if you like.

@Account Closed - You'll have to check with the lender but I believe they only do a hard pull the first time, then soft pulls once per month after that.

@Edwin L. and all...happy to share since Mindy said GO :).  

I'll give you the simple BRRRR model and how we're doing it in KC, MO:

Ok - for purchase, lendinghome.com is great - they need a minimum $50K loan amount and will do 80% of purchase price plus 100% of the rehab.

For refi (3-4 months later) we use Lima One Capital. They will do 70-75% LTV on a cash out refi.

So - an example:

$40K purchase, $20K rehab.

Lending Home will loan $32K to buy and reserve $20K in escrow for draws. You'll need $8K of your own money + title fees. Do your rehab (and pull the draw money). Complete the project then refi with Lima One at 70% LTV assuming an after repair value of $90,000. You pull $63K out, pay of lending home and some fees to title and basically break even. Now you have a cash flowing asset.

The hardest part is making sure you have a ground crew ready and having the gumption to pull the trigger on a deal that works.  

@Susanita VanGood - PM me and I will be happy to share that.  Not allowed on this forum.

@Account Closed - Believe it or not our first acquisition was Dec. 28,2018.  So, about 10 months.  Once we locked things in we've been able to buy 2-3 properties per month.  

@Account Closed - Sorry not at this time.  We have one vetted GC and keep him very busy.

@Account Closed - this lender pulls credit, looks at reserves, and looks at the house.  No tax returns.

@Account Closed - I use an LLC and a commercial lender for both purchase and refi. Purchase lender needs 10% of price down and will finance up to 100% of rehab. Refi lender is 70-75% LTV refi after 3 months of ownership. Regarding management, it took time but we built a team of people - GC and subs on the ground, leasing specialist that gets paid a commission ($300), a couple of different agents feeding us deals and we utilize Zillow a lot to find them too. Using Cozy for management software.

@Micah Hensley - Yes we can PM - just submit a colleague request.