All Forum Posts by: Torend Ebner

Thanks for the feedback!

@Jack B. They have wanted to sell for over a year? You offered 1.7% less ($423k vs $430k) and they aren't biting?

When does that offer expire? I would write a new one for $413k.

What concerns me is the comment on this thread about needing a soil sample. I have a feeling that could be a strong hidden issue.

If you are getting emotional about the deal, offer $425k with 48 hour expiration and express your willingness to walk away. There are too many opportunities out there. You have way more solutions to your problem than they have to theirs, apparently.

I have a short sale opportunity available on a two story 3000 sqft duplex for $27k. I've got a $25k rehab budget. Zillow / Trulia estimate value at $105k.

The place needs a furnace, which will run about $3k installed. Also needs appliances in the kitchens. Will need paint in the interior.

At $52k all in, I need a minimum valuation of $70k. With this rehab budget of $25k, what are some of the best ways to boost the ARV?

Interested to hear your ideas!

@Lance Neighbors the reason why investors say you "can't" do BRRRR with conventional lending is because of the traditional 9 month seasoning period. When you take the loan, the lender wants you to hold it for a while before you roll into something new.

Many investors use hard money loans or private to execute the initial transaction because it allows them to refinance with a traditional lender as soon as rehab is complete and leases are in place.

If you're just starting out, you can certainly take the conventional route as long as you're comfortable with your money being in the deal for that long. As long as you don't need it for your own housing and groceries, I think you'll be fine!

Keep us updated on your progress!

I think this is fantastic! I think the real question is around the amount of funding you have. Are you looking to use your own cash or OPM? If using your own funds, can you affordable to traditionally close the MF and then pursue the BRRRR?

Some may think this is foolish, but if you can get that first out of state deal DONE it creates a wealth of momentum!

Start the easy project first and make sure you did it right. Were your calculations accurate? What considerations did you miss? What were the effects?

Executing a simple, straightforward transaction will prepare you for the 3 month project. If you have the cash, I say do the MF first and THEN the BRRRR...

Good luck and keep us updated with the progress!

@Tevell, I agree with @AndrewCarlson. Everything is worth something - and that's why you asked for help, to find out what it's worth.

Before considering structuring the deal, start with trying to get some costs around the new sprinkler system required. I have a feeling you might be in the $40-50k, depending on the application. See if you can find someone who has experience in dealing with these condemned situations. Cheapest isn't the best.

Get the bid, pad it by 20%, and deduct that from their price, along with all other necessary rehab work the needs to be done.

The longer the property sits on the market, the better it is for you at the negotiating table. And while everyone is staying away from it, you could have a great opportunity on your hands. BUT you have to negotiate it appropriately once you know all the facts and figures.

Good luck and keep us updated!

Reading through this thread, Brandon you seem to have the best intentions, but I have the feeling you either don't trust your property manager or you have the wrong one. Either way, if you want to scale, you can't be spending hours reviewing camera footage or scanning reports of a handful of properties. You need to build your Core 4 and trust that they are doing their job. If you later find out they aren't, find a replacement and invest time in yourself to be better at qualifying and leading people. You got this!

This is a great testament to the power of people! Real estate is truly a people business and the more we invest inibuilding relationships the more successful we become. Great article!

Thanks for sharing your journey! That's what this is all about - the journey, not the destination. If your destination is retirement and spending time with your family, that's awesome! If it's building a huge portfolio, that's cool, too! Regardless, we all identify with the journey it takes to get there. We are all travelling on the same road and that is what makes this so exciting! Thanks for sharing and keep us updated!