All Forum Posts by: Don Nelson

@Brian Garrett - You and your advice are yet more reasons why I love BiggerPockets!

@Brian Garrett - my lender tells me 2 years of rent rolls before a refinance.  Any suggestions?

Ahhh @Josh Mitchell, that's precisely the problem I'm trying to overcome.  I thought you were saying we could count that prior to the 2 year ownership.  Bummer.  No, I already know this - I am trying to find a way around it.

@Josh Mitchell, that's great!  I was not aware that was an option.  So...I have a gross lease at $2000/month.  The lender will consider a loan with a gross payment of not more than $1500/m.  If my expenses are less than that, I can refinance?  I'll call them and see...that's a big plus.

Hey All - hope this is not a redundant topic and that I put it in the right forum...

Wondering about the refinance portion of BRRRR. Usually a lender wants two years of rent rolls before considering a refinance on a non-owner occ. Question is, how to speed up/accelerate the strategy with this hindering the process? Advice would be awesome!

Hey @Brian Garrett - I agree with @John Leavelle - You definitely want to know how your future refinance lender will assess the situation. Likely they will want at least a year of rent rolls before considering - probably 2, unless you're occupying one side or something. The BRRRR strategy is somewhat of a longer term play, but makes a ton of sense. Actually, that would be a good post topic - how to speed up the process so you don't have to wait for 2 years after each purchase...

@Jose Cortes, I have worked with several private lenders who structure deals this way.  I agree in simple promissory note fashion to a 12 month loan at a set rate, with payoff at the end.  I typically include the right to transfer to a rental and by them out via refinance.  But most non-private (i.e. hard money, conventional loans) won't allow this arrangement.  It also bites you if you take too long on a project.  Making those connections is not as hard as it might seem - most people can simply use their own network and family to cultivate relationships that are mutually beneficial.  Hope that helps.

Hey @Tori Smith and @Matt M.,

I'm doing acquisitions for a local wholesaler and we have new deals just about every week.  I can send you updates or get you in touch with them if you're still looking.  Let me know.

Welcome @Nick Frostbutter! I'm an ex-Navy man myself. I don't know that market, but it's a blast in the REI world (usually). Are you living in the condo and then flipping, moving to the next one, i.e. house hacking? If so, it's a great way to go while you're starting. Especially if you do the work yourself. If you buy right, the return should be very nice. What do your numbers look like?

@Angelica Osusky - I am truly impressed.  Your management on the rehab must have been great.  NICE JOB.  That is definitely the hardest part, as well as knowing your numbers.  Just make sure your sale price is the right one to move it quickly - don't hold out for an extra $5-$10K and lose 3-5 months of time.  Great job!