All Forum Posts by: Thomas Jaskulski

Thanks for the feedback, Katie. Glad to hear I'm headed off in the right direction. Building rapport is one of my strong suites so the chemistry tends to flow natural. Also, I actually have an REI meetup set on my calendar for this Wednesday so I'll be sure to kick the networking in high gear. Thanks again!

I'm new to REI and I haven't done a single deal yet, but I have been confiding in a good friend that has been doing BRRRR's for a few years now. My starting strategy is to do a few fix & flips to build some cash reserves up and then get into BRRRR in a couple of years. So, I decided to drive a nearby neighborhood close to my residence, recently and document addresses of seemingly vacant distressed properties. After doing much research, I decided to reach out to one of the home owners on Facebook and asked if she'd be interested in selling. She responded enthusiastically and is motivated. She lives 3 hours away currently but gave me permission to enter the residence and take a look around because the house is vacant. I brought my friend along and he devised a few strategies to employ with the property. Flip, Wholesale or BRRR. He told me that the house is pretty far gone and needs about $110K rehab on a $90k purchase(I spoke with the seller after our walk through and offered her $90K, she verbally accepted and is going to come up to the house location this weekend.) He disclaimed that it's a do-able flip but a big project for a first timer without many resources. He did offer to partner but after he ran the comps he came up with an ARV OF $290k. His suggestion was to wholesale it because he believed that for the purchase price of $90K, it'd be a relatively safe bet with a good margin.

So, my question is: 

How do I get cash buyers or "buyers lists"? And also,

When I draft the contract for the seller to sign, how far out should I set the closing date on the contract? I'm not using an agent.

I want to allow enough time for myself to find a buyer to re-assign the contract to but at the same time, don't want to drag it out to the point where the seller gets annoyed or doesn't want to sign. As I mentioned earlier, she was very enthusiastic and I was able to build great rapport with her because we actually have a mutual friend in that neighborhood. For what it's worth, we spoke on the phone for about an hour after I presented my offer to her.

Any feedback would be greatly appreciated. 

Thanks for the feedback, @Dina Nicasio! I still have a lot to learn but glad I joined this community to reap all the benefits of its resources. I do agree that having a clear timeline and budget is vital and am actively doing my due diligence with researching that subject. Cheers!

Thanks, Wale! Don't you think it would be a better idea to hold off on the BRRRR's until I do a few value add flips to build up capital? Correct me if I'm wrong but the BRRRR strategy seems more geared toward cash flow whereas I feel like I should be focusing on value add and appreciation right now. Thanks so much for the feedback.

Hey there BiggerPockets Community. My name is Tommy and I'm new to the REI world but I've had the desire to get into it since I bought my first home - primary residence in 2020 but never had the capital to start. I work a full time 9-5 and have a side business that I do on the weekends. I've got some cash saved up but no where near enough to cut it. Fast forward 4 years later and I had the epiphany that I can use the significant amount of equity in my home. I've been dealing with a local mortgage broker and have been approved for a $100K HELOC against my primary residence.

So lets talk strategy. I would use the HELOC for a down payment on the prospective investment property and then try to secure a conventional loan(right??). What are my options as far as securing that second mortgage and what would you recommend, Conventional, FHA, Hard Money?

Moving on, I've been house hacking for the past year by renting out a room in my house. It's not that sexy I know, but it's helped me learn and understand a lot with respect to having tenants. My ideal strategy would be to BRRRR but I want build my own capital before I start chasing cash flow.

Short term, I'd probably buy the next property and live in it while I'm adding value. Also, my current "room mate" has expressed her interest in renting my primary residence entirely so I think that's a smart option. I'm thinking that I should do a few value add flips to start and then once I have about $100K of my own capitol saved up, start the BRRRR's. 

Seeking any advice I can get from the community. 

So, what would you do if you were in my situation? Am I on the right track or do I need to go back to the drawing board?