All Forum Posts by: Tyrone Osilesi

@Carrie Mims the interest rate you receive on the 30-year fixed loan you refi into would absolutely be based on credit and other factors. You'll be seeking to pull out from the bank 70%-80% of your property's new equity (ARV). That (essentially) means you're leaving money in the deal so no additional down payment. Hope that makes sense.

Awesome that you have an interest in RE at your age. I'm no credit specialist, but I know what has worked for me:

- Get a secure credit card from your bank to help build your credit and then transition to a typical credit card that you use for small purchases and pay off IMMEDIATELY (pretty sure you have to be 18 though)

- Ask your parents or someone who has a great credit history to add you as an authorized user to their accounts. As they pay their balances on time, you'll reap some of that credit goodness.

- It's a good idea to begin having an established relationship with a bank. Ask a guardian to go with you an open a savings account at a bank you can see yourself being with for awhile. Begin making regular deposits into that account. 

Good Luck!

I have found that banks will only issue a HELOC based on a portion of the appreciated value of your property. If you have a property you purchased for $500K that is now worth $600K after a few years, you can tap a portion of that $100K bump. Not sure how you'd be able to repay purchase and rehab costs in full with this strategy if I'm correct. Unless you're taking the long-view and willing to wait for a few years in a market where prices are increasing rapidly.

If it were me, I'd treat your cash partner as a hard money lender. Have them pay the cost of the property outright, and look to repay them and recoup your rehab costs with a traditional refinance. Basically what BRRRR is all about. Good luck.

Thanks for sharing these details @Niyi Odumosu! Good stuff and very useful!

How difficult was it getting them to do a before and after rehab value appraisal? Did it cost a bit more? I think that's really key to know for the BRRRR strategy early on and have asked questions about that here in the forums.

Rentredi for sure

Hey BP,

Has anyone ever been able to use the appraiser or appraisal company the lenders use early in the BRRRR process to determine what they believe an ARV would be?

Seems to me this would be a good way to know with a degree of certainty what your project will appraise for. Is it professional to just flat out ask the lender for the name of the appraiser they use?

Thanks.

Not knowing your full situation or why your girlfriend doesn’t want to house hack, I’d lean toward option A- no need to sell what is clearly an asset in this market right now. This option may also allow time to clean up her credit. 

You may be able to buy your personal residence for less than 20% down and divert some of that capital to the purchase of a multi-family effectively having your cake and eating it too. 

Good luck. 

Congratulations on your successes thus far! I'm just closing on my third SFH rental using a traditional buying strategy and will be all BRRRR going forward.

If doing BRRRR deals, aren't you essentially recycling your capital again and again therefore minimizing new expenditure?

If you’re looking for a potential partner, send me a DM!

highly recommend reaching out to @Randy Charboneau!

Honestly, if I were in your shoes I'd do a house hack. You'll get your feet wet in REI, you'll get a more favorable rate, and you'll learn a ton quickly. Good luck.