All Forum Posts by: Steven Barr

For our BRRRRs, our key is the fact that the property is "distressed". Distressed could be vacant and worn down, owner passes away who's not updated the home for decades, a current owner who is a hoarder and is leaving for some reason, a foreclosure that is either occupied or unoccupied, etc. The distress means, typically, a traditional mortgage is unattainable without first buying the property and then renovating it. So, to answer your question, both.

Our only occupied home is one where we attempted to buy out the residents/squatters. After the buy out failed, we had to have them ejected through the courts. This home was one we did after we had some experience, cash reserves and connections (attorney, contractor, etc) to set us up for success. Based on our experience, if you've done a few BRRRRs, then occupied properties are ones we'd recommend you consider. If you're newer to the strategy, we'd recommend starting with vacant properties to reduce the number of things that can go wrong.

Best wishes to you!

@Ron Brady incredibly helpful response. Thank you!

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Are y’all looking for houses that are vacant (and basically unlivable)? Or houses that are currently occupied but could use some work? Or both?

If occupied… are you buying tenants out of their leases? I imagine hard money becomes very expensive if you have to ride a tenant out

Thanks for the input!

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Hey guys! I'm new to BRRRR investing and just curious if anyone is purchasing deals for 70-75% ARV including rehab in this market?

I understand it is different in every market. Just trying to get a general idea so I can manage my expectations as I lean into this

Thanks so much!

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Hey guys!

Are there such thing as hard money lenders that will cover 100% of purchase and 100% of rehab?

Most of everything I’m seeing is 90% of purchase and 100% of rehab. Just curious. Thanks!

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Just starting out here in the BRRRR method and could use some help from the experts

Where should I go to find lenders that will allow for refinancing immediatley once the property is rehabbed and rented out? Not looking to wait 6 months for "seasoning" period

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Just starting out here and looking for veteran investor input... Trying to be forward thinking on this strategy

We are considering BRRRRing our way into a $10-20 million portfolio of 2-4 plex properties over the next few years. Maybe that's somewhere between 25 and 50 houses.

From there, we would like to sell the entire portfolio so we could perform a 1031 exchange and consolidate into an apartment complex. We will then stay in the apartment space. Or at least that is the plan for now...

Is it going to be possible to sell a portfolio of that size to an individual if the properties are spread out across an entire state? Would a hedge fund purchase? What if all the properties are in LLCs?

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Is there a minimum portfolio value to sell your 2-4 units to a hedge fund?

Also, what if all your properties are in LLCs?

Does it matter how spread out your properties are?

Thanks!!

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Looking for quality property management companies that work around a 50ish mile radius from Atlanta. Any recommendations on which companies I should be interviewing?

Thanks!

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Atlanta, Georgia

Question for the veterans....

If you are looking to develop and then sell a portfolio of small rental properties, say 2-4 unit houses, does it all need to be bought in the same area?

Trying to keep an exit strategy in mind. Will it matter if the 20 properties are spread out across the entire state? Or does it all need to be within a 50 mile radius?

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I should preface this by saying that I am not a BRRRR guy, and don't pretend to know anything about it.

However, I have toyed with the idea of doing it. The risk seems large though. If I take out a hard money loan to buy a house and rehab it, what happens if the housing market goes down and I am not able to refinance for my projected ARV? It seems that I am then unable to pay my hard money loan back. If this loan matures in 12-18 months, that seems to be flirting with bankruptcy if I don't have the cash reserves myself to pay it off

Thoughts?

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All Forum Posts by: Steven Barr

Steven Barr has started 86 posts and replied 161 times.

Post: Occupied or unoccupied BRRRR houses

Post: Occupied or unoccupied BRRRR houses

Post: 75% PP of ARV in today’s market

Post: Hard Money Lenders covering 100%

Post: Needing Lenders for refinancing on rehabs

Post: Small multifamily portfolio to large multifamily portfolio

Post: Selling portfolio to hedge funds

Post: Quality Property Management Companies Outside Atlanta

Post: Selling a portfolio of rental properties

Post: BRRRR in a down market