All Forum Posts by: Robert Damato

@Andrew Postell 

Liiiiiight bulllllb!

This all makes sense, thank you for writing this!

@Kase Knochenhauer that makes a lot of sense, I was about to quit claim the house into my personal name just so I could get a good loan, but to do that before makes way more sense, thanks a lot man!

So I just finished rehabbing my duplex and have tenants in the property. For the most part, the rehab went pretty smooth, can't complain. They house is owned Under an LLC where I am the only owner.
This was intended to be a classic BRRRR deal but now that I am at the end of the train I had a lot of trouble finding someone to refinance the house 70% LTV or even close at a reasonable rate. The only thing I could find for this was a commercial loan officer that is writing me a loan for 80% of the total cash I have invested into it, at 4.5% APR.

Luckily I put a lot of money into the rehab myself so the loan is enough to cash out my investor.

My Questions are this.

How do investors structure the ownership of houses in order to have a smooth refinance process at the end.

How are they able to repeat this process and scale without killing your debt to income ratio, and affect your rates. 

Thanks for your time,

Cheers

Hey David, welcome to BP. It all depends on what you are shooting for when it comes to cashflow, if you are looking for 1000 a month in cashflow then no it will not work but if you are shooting for 500 a month in cashflow then that may very well be a opportunity for you since it is essentially turnkey. Just remember not to juice your numbers up, run your numbers at worst case scenario and see if you can still make money. Also make sure they didn’t half *** the flip and cause you to have problems down the road. Hope you can get your first deal in the bag. Good luck 

Thanks Aaron,

Yeah it is for personal use, I'm just looking for some fundamentals in order to find the ARV to this property, I just threw the numbers in there to give some background on what I'm working with. Thank you for your response

Hello BP, how are we doing?? I am looking to see If anyone has any pointers on finding an ARV on a property if there are no similar comps in the area. For example, I am looking at a 3 row townhome on a isolated lot amongst primarily single family homes with a couple duplexes here and there, and I can not find a single other building like it in the area. The only source I have to go off of for its value is 314k and that is off of the city assessors website and they are asking 534k. It needs about 15 to 20k of renovations per unit I think 534 is high, so I am trying to find a number that is not going to put me over the value of the property after the value is added.

looking forward to what yall have to say,

cheers!

How's it going Jaden, I would say that if you are really passionate about real estate and dedicated to success then definitely follow your passion. Even if you have a job where you are making 15/20 dollars an hour while you are studying real estate and NOT racking up more debt from the business (college) you are going to, that is more progressive than going to school for something that you are not passionate or even interested in because its "going to make you a lot of money". Take note that even though you may be making say 80k a year and you have 100k in student loans, at a national average of 5.8% interest rate(nerdwallet.com) you will have a 705 dollar payment for the next 20 years, on top of your rent or mortgage, car payment etc... So I tell people "make sure you really... like really want AND NEED to go to college before you take on that loan for your education. Talking about me personally I did go to 1 year of college and just did general education classes that were required by the college in order for you to start your degrees program. I thought I wanted to do civil engineering but was not completely set on it. after the 1st year I decided to take a year off and figure out what I wanted to do. Then I found Bigger pockets... needless to say I never went back and I now have my first duplex via the BRRRR method. My investor already told me he wants to partner again so I will be rolling all that money into the next deal and so on and so fourth. I am by no means a highly successful investor but I am on my way, and that would have never happened If I had not "dropped out of college". I am also 22 years old so pretty close in age. hope this helps man, cheers.