All Forum Posts by: Tony Pellettieri

Hey Elliot, my name is Tony, welcome to BP and the world of Real Estate Investing!

There is a great REIA meet up in Matthews, NC I attend weekly and would highly recommend. It's located at Jonathan's on Tuesday mornings 8am - 10630 Independence Pointe Pkwy, Matthews, NC 28105.

If you are interested using the BRRRR strategy and haven't gone through the book already, I'd highly recommend listening to on Audible or reading the hardcopy of the book. The book FLIP is very informative as well. I believe learning by educating yourself is the best base for achieving success.

BRRRR on Amazon

BRRRR on Audible (1st and 2nd download w/ audible are free I believe)

FLIP on Audible

Best of luck!

Hey Kaitlyn, Welcome to the world of Real Estate Investing. We remodel homes just south of Charlotte in Chester, SC and practice the BRRRR strategy. Closing on investment properties can become addicting. The more you do it, the more you want to do it again and again.

I attribute the majority of my success and motivation to the knowledge I have acquired. While getting on BP is a great place to network and receive feedback as well as learn, I think educating yourself is a great base before getting started.

If you are interested using the BRRRR strategy and haven't gone through the book already, I'd highly recommend listening to on Audible or reading the hardcopy of the book.

BRRRR on Amazon

BRRRR on Audible (1st and 2nd download w/ audible are free I believe)

Hey Danielle, congrats on getting started and investing in your first Investment! We remodel homes just south of Charlotte in SC and practice the BRRRR strategy. Closing on investment properties can become addicting. The more you do it, the more you want to do it again and again.

When doing conversions, updating baths, creating new bedrooms/bathrooms, etc. make sure you do your research on local codes and permits required. If/when you plan on selling the property, if you don't pull permits, you may run into trouble with inspections when attempting to list your home if the amounts of bathrooms, bedrooms, etc have changed.

We utilize handymen for many parts of our rehabs but on properties that will be rented/sold in the following 24 months, in our area, a GC is required to pull all permits. Meaning, we as the owners, cannot pull the permits ourselves if the property is not our primary residence and we will be selling/renting the home in the following 24 months.

House hacking is a great way to get started. Don't get too stuck in analysis paralysis when needing to choose materials. Think about your long term goals. If your plan is to rent, know renters can be hard on any finishes. LVP/Laminate are great choices for rentals due to being inexpensive & durable. Apply this concept to many areas of your rental areas/homes.

Good Luck and keep that momentum and optimism going!

My name is Tony. I am Father to 2 Boys and a full time Real Estate Investor. I live in Fort Mill, SC which is just south of Charlotte, NC. Other than a group that is hosted from 6-8pm on the last Wednesday of the month, I haven't found any other REIA meet up groups in this geographical area of SC. Night meetings can be difficult to attend due to parental duties such as cooking dinner and getting the kids ready for bed. Perhaps you can relate...

There is a great REIA meet up in Matthews, NC I attend weekly and would highly recommend to anyone in the Charlotte/Surrounding area able to attend at Jonathan's on Tuesday mornings 8am - 10630 Independence Pointe Pkwy, Matthews, NC 28105.

I am interested in hosting a weekly/bi-weekly morning meeting around 8/9am Wednesdays for coffee/breakfast & discussion/networking for folks in my area, and further into SC including York County, Lancaster County, and Chester County.

I invite you to attend if you are either currently involved, just getting started, or interested in Real Estate Investing. The first meeting will take place on Wednesday Feb 14 @ 8:30am in Rock Hill at Rock Hill Diner.

Hey Emeldine, I attribute the majority of my success and motivation to the knowledge I have acquired. While getting on BP is a great place to network and receive feedback as well as learn, I think educating yourself is a great base before getting started. If you are interested using the BRRRR strategy and haven't gone through the book already, Id highly recommend listening to on Audible or reading the hardcopy of the book.

BRRRR on Amazon

BRRRR on Audible (1st and 2nd download w/ audible are free I believe)

 Hey Antonio,

There is a BRRRR calculator on BP. A link to it can be found on the homepage as well as under tools in the drop down in the top left corner of your screen. If you are unsure about the values that go into a BRRRR calculation, I would recommend learning about the process before you think about practicing the process. Acquiring an education and knowledge is often beneficial before putting something into practice. If you haven't already, I would highly recommend the book BRRRR, you can read a hard copy of it or my preferred method, audio book via audible.

BRRRR on Audible

BRRRR Hard Copy on Amazon

 No doubt about the amount of work, and often money, that goes into sourcing deals. All sage advice clearly from an experienced wholesaler about how to get a deal to the closing table. 

Thanks KC! All great points.

I’m leaning more towards #2 as my upfront capital invested for repairs is much less, I’m still cash flowing positive about the same monthly, and the property will already be rented satisfying that requirement for the loan. If it is in fact 3 months before we can do a cash out refi, the entire rent - T/I will be cash flow adding a few thousand extra to the bottom line.

Although the ARV is less, we're still pulling out more net cash, while investing less upfront. When we decide to sell, we can always complete the full rehab at that time. Currently the area is a little rough but many remodeling projects are taking place which is part of what is helping the appreciation of property in the area.

Hey Mike, Thanks for the insight. We've been talking to some Private Lenders/Brokers recently that say they can do a DSCR cash out refi in 3 months or less. Pulling all of our cash out of the deal, and then some, whether we're using our own capital or a mix involving private capital is the goal, in regard to the time value/expense of capital. Perhaps there is some mistruth in what they've told me. Trust but verify as they say. Looking forward to gaining exposure to see all of the nuances involved and gain that experience.

When looking for properties to invest in, should an investor rely on wholesalers to present deals to them?

We typically do not rely on many of our opportunities coming from wholesalers, but that's not to say we're not occasionally interested in something they have to offer.

In addition to scouring our farm area while we drive around to and from our properties, and looking at aged(100 day+) listings and new low priced distressed condition listings on the MLS, which is where many of our deals come from, we reach out to local agents in the area we're looking to invest and let them know we pay cash. We let them know what kind of properties we're looking for and if they come across something or someone brings them something we may be interested in, to let us know FIRST.

In return for doing so, we agree to any of the following.

1. If the seller would agree to sell us the property prior to it being listed, at an agreed upon price using a closing/title agency to complete the transaction, we will pay the realtor a finders fee.

2. If the seller would like to use an/that agent, we will let the agent also represent us so he/she may earn a dual commission for representing both us and the seller. If our plans are to sell the property in a short period of time, we may also agree to let that agent list the property for us when we go to sell it so they may make a round trip on their commissions.

When a business is trying to grow, we've found that finding more potential deals is often times a company's most important mission and can also be the single most difficult challenge.

Utilizing wholesalers is an easy way to find opportunities, simply because they find the opportunities for you. Because it's so easy, many investors utilize this as their primary source of deal sourcing. With that being said, depending on the wholesaler, the deals they bring you can vary...

They can bring you good/great deals. They make money, you make money, or lots of money.

They can bring you bad deals discuised as good deals. They make money, you dont make money, if you take the deal.

They can bring you what were good deals, that are no longer good deals. They focus on making too much money.

They can bring you bad deals. This often happens because they are not deal makers. Many wholesalers have not practiced the product they're selling enough to become effective at deciphering between what is a good deal and what is not.

Nothing against wholesalers, and honestly we will likely start our own off market deal sourcing campaigns, but to us the chances of a wholesaler bringing us a deal that is a better deal than we can find/source after they've charged their fee to make it worth their time for finding the deal, It's not a deal we're interested in.

On the flip side, every once in a while, a wholesaler underestimates a deal's potental, sometimes more often than not, due to their limited understanding of what makes a deal a great deal.

We're always open to looking at deals to see if maybe they missed something. If so, they still get paid, we get a deal, and we both make money.