All Forum Posts by: Stephen Glover

@Wesley W. I work with a handful of investors on BP.  Our company is carefully choosing what acquisitions we are taking right now but I'd be happy to be a resource for you!  I'll send a DM.

@Stephen Adams My lender will fund 80% of the ARV. He vets the deal to be sure my numbers are accurate. I'm fortunate that my lender has 40+ years of RE investing in the same market. The last 3 houses I bought, I couldn't get them all in for less than 80% of the ARV so I'm putting a few thousand of my own into the deals. Still ridiculous to invest ~$10,000 to get ~$600,000 in cash flowing real estate.

I met him by networking in the community.  With that said, I've met some great people through BP too.  You'll have different connections with different lenders and the lenders make the rules. From what I've seen, the rules are set based on their confidence in you, and your relationship with them.

Personally, I don't listen to "It's difficult to..." or "It's too hard to..." because other people are doing it.  Usually that is an excuse made for folks who don't want to put in the work to make it happen.  I read all the time on BP how the market is too hot in Richmond to invest... meanwhile folks I know are buying 50+ houses a year in the same market.  Similar concept.

Thanks @Taylor L.  I probably would not be on BIggerPockets anymore had I not contested that appraisal haha.

@Stephen Adams As Taylor mentioned I've had success with BRRRRs and have 3 underway right now. There are many thousands of investors with more experience/knowledge than me, but hopefully I can add some value. I'm also a property manager in Richmond, VA so I get so see what many other investors are doing as well. Check out Taylor's link above to my other post to see a BRRRR in detail.

Funding (solely my opinion): Save enough capital for reserves and also in case something goes wrong with the BRRRR, but NOT for the reason of investing that capital. Build relationships and invest other people's money if possible, but have your own money to back it up as needed.

Growing: All about relationships. With lenders, banks, insurance/CPA's/attorneys, GC's, and other investors. I have 7 BRRRRs lined up after these 3 (one owner), and another 3 BRRRRs after those 7 (one owner). Hope to complete these 3 and those 10 in the next 6-8 months if I can maintain a strong personal cash position (for reserves or mistakes). 

Start analyzing random houses over and over again- the numbers will begin to make sense! Do that while you begin to build your team, then when you have a deal jump on it.  Good luck!

@Ludovic Ott I was dropping in to say my piece, but @JM Payne nailed it.  Relationships- get to RE investing groups and meet folks.  The only thing I'll add to what JM mentioned is to be sure you have your own game plan (business model) simply outlined for when the lenders want to learn about you. They'll want to be sure you know what you're talking about, and that you have specific goals to target.

Simply put, you can BRRRR if you (or your private lender) owns 100% of the asset and can appreciate the home to be worth 20%+ more than your total cash invested including repairs.

Of course, numbers could fluctuate either way and provide different results, but that's the easiest way for me to put it. If your deal fits, then BRRRR. If not, plan your next one like @Jonathan Lyford mentioned and enjoy the cash flow from this one.

Last note:  Generally the improvements are done BEFORE leasing.  This way the rent will reflect the improvements you've made.

@Taylor L. appreciate the mention.  @Joseph Phillip Like Taylor mentioned, I have a few BRRRRs going on right now in Richmond, VA and also own a management company that focuses on SFH and multifamily less than 20 units. It's difficult to find good cash flowing deals on the MLS right now, but they do pop up now and then. However, if you have the right relationships and are willing to put in the time to find deals off-market, there's overwhelming opportunity in Richmond. I know people who are buying many houses repetitively because they've built the right foundation. At the same time, many other are saying, "Market is too hot, no deals in Richmond, going to wait." etc.

Like Taylor mentioned, I think DC prices are there to stay.  I lived in Ashburn for a while.  Beautiful area and some great people, but glad to be back in Richmond.  Let me know if you plan to come to Richmond or need any connections here to get started.  Glad to be a resource.

@Robert Stamper I manage a bunch of property in Richmond, VA and out of all of our investors, one of them hires/pays for a landscaper. He is buying $400,000+ houses cash in the best neighborhoods though, so it makes sense that he does it. Everyone else who is worried about cashflow does not. It is the tenants responsibility and they expect it.

Definitely do not supply a lawnmower!  That's asking for liability / injuries / repairs / etc. and filling it up with gas every two weeks :)

@Rachel Smith Yes ma'am! I only invest in Richmond, VA but I met with 7-8 local banks and most of them did portfolio loans... some did not but they had another "department" of sorts that they worked with that could handle that for me. The important thing is that you find a lender that knows what they are talking about. Some local lenders had no idea what I was doing, and some completely understood. Ask some local investors what banks they use, and for a connection to a lender in your area. You might be able to skip a lot of the phone calls and emails to vet them. Also, keep in mind that portfolio loan simply refers to a loan that the bank keeps in their portfolio, it doesn't mean you have to buy 34 houses at once. That's a common misconception so I figure I'd point that out.

Lastly, as I mentioned above, many banks have different terms and types of portfolio loans.  Ask around, find the right fit for your investment.  I have 3-4 banks that I continue a relationship with for that reason.  Hope this helps!

@Nicardo Mundell you mentioned that you are missing the tiny details, but also mention you don’t know the market, which is a massive detail!

I think you’re on the right track looking at it from an 18 yr olds perspective, but you don’t know what you don’t know. You know you want to invest in RE which is way ahead of where I was when I was 18.

This isn't what you want to hear, but (in my opinion) the best route for you would be to continue learning and meeting local people. Get to meetups, REIA meetings, shake hands, grab coffee with investors, etc. Do what you can to offer value, and get valuable knowledge in return. This will guide you naturally to your first deal, whatever it ends up being.

One thing you’ll learn is that cash buyers are everywhere in Richmond, Va. They buy from people who have good deals. People who have good deals are generally connected, experienced, have invested heavily in leads, and have paid their dues over the course of a few years. Long term success does not happen overnight.

@Rachel Smith look into portfolio loans with local banks. Different banks will have different products. My last BRRRR was 45 days close to close. I have 3 more BRRRRs going on right now. If you want to do conventional then you'll have to wait 6 months, otherwise plenty of options to speed things up.