All Forum Posts by: Steve C.

Coming into town for this week.  Look forward to meting some locals making things happen!  Thank you for putting this on Sean - Steve Christmas

@Jon Passow you can always challenge the initial appraisal (listen to Andreas’s Gidelli’s BP podcast). I tried this on my primary when the appraisal came in short. It worked, not as much as I’d like but we got a bit more in value after the challenge.

You can also try another lender, $500 more to appraise again, but worth it. One thing to look out for, if your lender recommends using a appraisal substitute (where an REO agent comes to view the property instead of a real appraiser and then sends him their findings so he can complete the appraisal, run) generally these agents are terrible & doing this because they can't make a living selling homes. (In my experience at least) The lender may tout this as saving you a couple hundred on the appraisal, but you really get what you pay for. Apparently this is now common on Freddie Mac loans if the LTV is purported to be 80% or less. Do NOT save a few hundred in cost to lose 10's of K in value!

@Corey Mirus thank you for your service! Keep calling banks, but also credit unions I went through the same process a few months back. I found Wells Fargo would lend, but at a lower LTV, and about 2% higher rate than one of the local credit unions here in Las Vegas. If you're looking to BRRRR, think of the HELOC eating the cash flow while you have it out, then pay it back on the HELOC when you refi the next property & you get two streams of cash flow and two equity cushions if you can do it right. One thing I'd say is be sure you have some extra savings in case of vacancy on the duplex while loan is out, or enough income you could cover it personally while rehabbing. Best of luck!!

Such a good read. You’re a real word-smith if not Sheetrock-hanger. Thank you for the no bs account.  I’m planning my first Brrrr soon. At least I already have a miter saw and will be contracting out all the work in Memphis, TN. Any contractors I should speak with, PM me 😊

@Dean Harris thank you, I see your email in your profile as well, I will be in touch!

@Mitchlyn D. I’d cancel. In addition to being harder to rent out/ less rent/less desirable tenant, you’d have constant potential for broken leases due to noise/safety & legal issues. Sounds a mess.

@Kyle Deutschmann Thank you, I appreciate you reaching out. I will definitely speak with you about financing as I get going there & hope to be able to help you as well as I find good team members in the area!

Hello again,

My wife & I have one rental here in Las Vegas. She’s got a full time job, as do I & I side hustle selling real estate locally. Our first son is 2 & the idea is to buckle down & invest hard along with our income hustles so by the time he’s in middle school we can always be there with him.

We save every month & also just got a HELOC on our 1st rental for more capital to BRRRR. Were looking into Memphis, TN & I plan to fly out next month, MID December for 5 days. I'd like to meet face to face with the usual suspects for a successful BRRRR Long Distance & have read both the David Greene books & consumed every BP podcast over last 3 years. Looking for opportunities in ARV areas around 80-125K SFR.

Looking to find:

1) a few good Realtors experienced with the BRRRR method.

2) local Memphis Lenders/Banks who’ll do 75% cash out refi’s based on value, not cost.

3) Closing attorney & Title Agents who understand delayed financing for 2nd or 3rd+ deals once team is assembled & up & running smoothly.

4) General Contractors familiar with buy & hold, value add projects.

5) Property Managers with good communication & who you’ve had good success with long term.

6) Local investors for possible partnership who have a few BRRRR's already under their belt in Memphis, TN.

7) Your favorite BBQ restaurant in Memphis area

I plan on doing a lot of repeat business & making sure the team profits with me each transaction. If you are, or know someone I should schedule time with, please let me know, I’d love to sit down with you.

Thank you for any input & look forward to meeting you all!

Excited to explore & get started in Memphis,

-Steve Christmas

@Sean Mcmahon if the deal is so good (needs cash to buy for rehab equity creation, therefore not financeable) and the agent is getting 3%.. they could only buy every 33rd deal. 😉

The method used by @Scott Anderson may work in certain areas, but be sure you understand your local laws; for us in Nevada my understanding is it's illegal to write offers negotiating how much commission is paid.  Real estate & it's applicable laws can vary quite a bit from location to location, but if this is doable where you are, it would accomplish the same goal.  Either way it looks like you have a few options @Darius Kellar, have her speak with her broker & find the best one for your situation there.