All Forum Posts by: Tony Cruz

Assuming it is possible to do this, for the purpose of financing a BRRR deal, is it a good idea to get a bridge (personal) loan to cover a hard money loan fee to purchase a property (if upfront payment is necessary) + closing costs + the rehab of a property + foreseeable holding cost, if the deal is showing cash flow positive even before refinancing and can also cover the monthly personal loan payment as well? Then payoff the personal and hard money loan when it is time to refinance in 6 months?

Could this financing strategy work for those who are cash restraint or just don't want to put a lot of their own money into it? Or is this doing more work than necessary? Has anyone done this before? 

Just trying to get creative as to how I can get financing for the acquisition, rehab, and holding cost to BRRR a small MFR. Do you have any suggestions as for some best ways to get these types of financing without anything out of pocket?

@John Sledge Hi John, welcome! Thank you for checking in and sharing that information. I agree that is very important to have an accurate idea of what an ARV should be, if you do a proper rehab. As of now I count on using online tools such as Zillow and asking an agent for comps. Any suggestions as to other ways or websites that might be more efficient to get these comp or recent sales data to get a better idea of what a potential ARV should be around?

@Dmitriy Fomichenko

Thank you for your kind wishes! I see you’re from Anaheim Hills. Do you invest yourself? What brought you here to BiggerPockets?

@Tyler Hungerford I typically drive around the area since I live nearby. But I haven’t really seeking out physically distressed homes while driving by. That’s a good idea and something I should work on keeping in mind as I drive about the area. I’ve mainly been using the “Foreclosure” option here on BiggerPockets with some surprising potential there that could work and perhaps I could take a quick drive to see something in person if the numbers work out.

I've ran into a number of potential deals on using the Foreclosure and BRRRR tool here on BiggerPockets. However, my main goals right now is to get a small team in place to have ready so I can start making offers with confidence I'll be ready if an offer is accepted. My main concern at the moment is finding a good investor friendly contractor with experience, who also invests themself, and is ideally from a referral.

I see you’re from Riverside! Do you buy in that area or somewhere else? When did you get started? How’s it going now? Where do you want to be in the future?

Cheers,

My plan is to find a distressed property (either SFR or small MFR) in and around the Downey, CA area that I can BRRRR on but I am still shopping/browsing around for a deal. I've just started looking, so I don't have any contacts in this area so I figure where else is a better place to start than right here on BiggerPockets. I would like to hear from other investor's experiences in and around this area, especially if you're an Agent, Lender, Contractor, or Property Manager. Let's get to know each other! I'd like to know more about you and what you do, perhaps I can find a way to be of some assistance to you as well!

@David Martin Jr Inland empire area maybe Hesperia or Victorville, CA

@Ben Stoodley Thank you for your response. Partnering does sound like the safer option to start with, then learning enough to do my own deals. 

@Bridgette Delva Thank you for your thoughtful response. Those are some good questions that you've brought up. The target market i'm thinking of is in a rural area about 70 miles north of Los Angeles where 3 bed 2 bed single family homes are typically priced about 250-300k. I figured this market might be a cheaper barrier of entry for me to start in. I've been trying to find ways I can try to get a deal done with 13k but I think it might be a better idea to save up some more. I hear 25-30k is ideal cash reserve to start with?

Decent credit (about 688 FICO), about $13K in cash reserve savings, current employment status is furlough but want to get out of that job to invest full time. I plan on using hard money loans to fund my future deals but I am anxious about using that type of loan for my first time. Should I wait to build enough experience with a partner before going out on my own with these loans?