All Forum Posts by: Travis Beehler

If you can get a HELOC that will cover as much as you need I'd say go ahead. Just check with the lender who is going to refinance you out of that first and see if there will be any seasoning requirements. They treat cash and lines of credit differently on the refinance as compared to an actual 3rd party loan on the property. Sometimes they want you to own it for 6 months before they can use the new appraised value, other times the interest rate is a little higher. Its been awhile since I checked on those rules, so best to know first.

Oh absolutely. That's been my biggest issue so far is the seasoning rules. I'd find a lender, they were great, would do a 30 year loan, but it would be a 7/1 ARM, or maybe would have a 1 year seasoning, etc, etc. VERY difficult to find a lender who'll do a 30 year fixed on investment properties under my LLC. :) Thank you very much for all your advice Jennifer! I appreciate it!

0 Votes

Originally posted by @Jennifer Beadles:

@Travis Beehler happy to help! I too like the details, it makes these topics real for people.

BTW... that property was one of my all time favorite deals

Oh, and what's your opinion on using a HELOC vs. Hard Money Lender for the BRRR strategy? I'm in the middle of getting set up for a HELOC, and was wondering if there was a major difference between the two?

0 Votes

Originally posted by @Jennifer Beadles:

@Travis Beehler happy to help! I too like the details, it makes these topics real for people.

BTW... that property was one of my all time favorite deals

I can see why! You're making, what around 400% COC? Very nice! I assume that $1,200 a month is net?

0 Votes

Originally posted by @Jennifer Beadles:

@Deshawn Lewis sure! Since I like the "uglies" and I want to get the best deal possible, I do the initial acquisition using hard money. I explain to the seller that me using hard money is same as cash, we can close in 7 days and there's no appraisal required.

Then, my hard money lender collateralizes another property I own with a second mortgage for the down payment on the new property (20%). So the hard money loan is zero out of my pocket, and if its a good enough deal I can finance in rehab costs too.

Then I rehab the property, put new tenants in and refinance the hard money with a conventional lender and after closing the second mortgage is released. So long as the new property has 25% in equity I can refinance and have only the monthly payments out of my pocket.

For example, I bought a duplex for $130k and had $15k in rehab. So I got a hard money loan for $145k and he took a second mortgage on another property for $29,000. I rehabbed it, and the new appraisal came in at $230,00 so the max LTV would have been $172,500 and my loan balance was only $145k so I rolled in the refi costs of around $5k and left the remaining equity in the property. The second mortgage was released on the other property once the hard money lender was paid off, and this property now cash flows $1279 per month and I had 3 hard money payments ($4350). Pretty good deal :)

Nice deal Jennifer! I especially LOVE the details you've put int. There's a lot of people out there who give just vague ideas of what they do, and I greatly appreciate it when people give details. :)

0 Votes

Originally posted by @Jennifer Beadles:

@Travis Beehler I've done tons of BRRR deals, it's my FAVORITE strategy for acquiring rentals. I do it a little different, and I prequalify the properties more ahead of time and I'd say 75% of my deals get accepted, though I am writing less offers.

This has been my main strategy, and here is what I look for:

1. Multi family properties that have been on the market for awhile, like 90 days or more. If it's been 60 days and they've done a price reduction or two I'll go after those as well

2. It's easiest with properties that need some work. Often times the owner is selling because they cannot afford to do the work, and if the work is a major system or needs a major rehab I use hard money.

3. I also look for properties that are under rented. This could be another reason why the owner is selling, the property may not be cash flowing for them and since the market has improved now is their time to get out. If you have a good knowledge of rental rates, then run the numbers in pro-forma to see if they will meet your minimum return criteria.

Hope this helps!

Perfect! This is exactly what I'm wondering! Yeah, I've noticed some properties need a bit of work, nothing major, and I think those are the ones that will most likely bite.

I wondered because I see properties listing for say $100k, but one would naturally assume if you came to someone and said "I'll give you 63k cash", that they'd like balk at the idea. :)

0 Votes

Hey all!

I was wondering how many of you out there have done a BRRR type deal, and how often your offers were accepted? I know Brandon has said it's around 3-10%-ish or so (my memory might be wrong), but I was wondering if that's the case for you guys out there?

I plan on doing this at the end of summer, and I'm used to be being told "no" a lot, but thought I'd ask anyway.

Side note: Have many of you out there used this strategy as your main strategy for acquiring properties?

Thanks in advance for your answers!

0 Votes

I'd at LEAST as for them not to have the $200 renewal fee. That costs them almost nothing to do, including the time involved for the person to get them to sign. Hell, they can set up a Docusign account, and streamline everything.

0 Votes

Originally posted by @Michael Braswell:

For buy and hold investors, PM me.

Incoming PM from me Michael. :)

0 Votes

Originally posted by @Shefali R.:

thanks @Travis Beehler - the death occurred in the living room (hard wood floors) - and they want the carpet in the bedroom replaced!

Ha! Oh that's too funny! Then this is even more of an obvious attempt to justify them wanting new carpet. I agree with Marcia and check for the communicable diseases portion of things, but if that's not the case, then I'd give them a firm no. If they want out of their lease, then go ahead and let them out without penalty, but WOW the nerve of them asking for new carpet when he died in a different room and on hard wood floors!

1 Vote

Hi Shefali!

It sounds like they just want new carpet and they are using any excuse they can find to justify it. I'd be more inclined to say no at this point. You could offer to replace the carpet in the room that the man died in as a compromise though. That traps them into their excuse of "hygiene issues". If he died in say the bedroom, then there's no reason to replace the carpet in the living room right?

1 Vote

All Forum Posts by: Travis Beehler

Travis Beehler has started 17 posts and replied 300 times.

Post: BRRR Accepted Rates?

Post: BRRR Accepted Rates?

Post: BRRR Accepted Rates?

Post: BRRR Accepted Rates?

Post: BRRR Accepted Rates?

Post: BRRR Accepted Rates?

Post: Ask for discount from property manager?

Post: Financing more than 10 properties

Post: Tenant says a death in the unit years ago causes a hygiene issue

Post: Tenant says a death in the unit years ago causes a hygiene issue