All Forum Posts by: Warren Bright

 Thanks Kevin :)

 Thanks for the response!

Okay so bare with me here please... If you then refin and get a new $87,500 loan (of which some would cover your old loan) your mortgage repayment is a lot higher because you are paying off this new value vs paying off only $60,000? How is this viable?

Hi everyone.

So I am trying to understand this BRRRR strategy a bit more, and in doing so stumbled across a question that I have which I hope you can help me answer.

To set up a little scenario:

• You purchase a property at $100,000
• Deposit is at $40,000
• You require a loan of $60,000

To make things simple I am not going to include transfer costs etc...

Lets say you have waited 5 years and your new value of the property is sitting at $125,000.

You then look to refinance at 70% LTV and get a new loan of $87,500 based off current value of the home.

And now my question:

This lump some of money that you receive, is it used to pay off your previous loan of $60,000, leaving you with only $27,500?

or

Do you leave your previous loan and now essentially have two loans to pay off. (If this is the case my query follows). How are you able to keep BRRRR'ing if you have multiple loans and only earning one set salary. Surely you wont be able to qualify for all those loans?

I am just a bit confused and would love an explanation.

Greatly appreciated!

Exciting news @Connor Swalm.

I am really interested in the progress of this flip and would love to see some photos!

Keep it up!

@Nicholas Patricio this is awesome! Glad to see another student interested in property!

Having an apartment in a area close to universities will always be a winner as there is a constant need for student accommodation.

For now I would recommend starting on the BP podcasts, not only are they highly informative, but the investor stories are most captivating.

Enjoy your time!

 Thanks for the tip.

 Because I am from South Africa and still new to the property market, I am uncertain if there are easier and cheaper ways to go about finding owner information on specific properties. So I have used a third party company called Lightstone, which looks at the deeds, owner information, mortgage, previous sales etc...

To find out the deeds on a property you can go through the SA govt, but that means you have to pay a registration fee to access this data as well as a monthly payment which is quite expensive.. I think all that these third party property valuation companies do is sell the information at a more affordable rate.

 It's from a third party company called Lightstone Property: http://lightstoneproperty.co.za/OnlinePropertyRepo...

I am from South Africa and the public data (from what I am aware of ) has a valuation roll that is only from 2012, so everything is a bit outdated. This led me to looking to finding out current information on owners, ID number, mortgage owned, previous sales of the property, average listing price of similar properties in the area etc..

So you purchase this report for R50 rand which is like $4 and it gives you all that information.

It could be quite useful in a foreclosure as well, as you could potentially find the current owners on properties that are going on Sheriff auctions, and contact them directly.

Pretty excited as I have just bought my first property valuation report.

For me who is just starting out in property this is quite a big deal. I have been eyeing an apartment that I am hoping to put a low ball offer on, seeing as the current occupant has messed it up quite badly. He is a smoker, sub letter and the apartment is overall quite messy.

I was happy to see that you can purchase these valuation reports that looks at owners in the complex, recent sale prices, similar apartment pricing in the same area etc...

My question is: Do you purchase valuation reports when looking to acquire a property, or how do you go about your property valuation / comp process?

Interested to hear some replies.

Hey Austin!

I am a 22 year old student and pretty much in the same situation as you. From the steps that I have taken I would recommend listening to as many podcasts as you can: https://www.biggerpockets.com/podcast

I have stuck towards reading blog posts and personal stories, as I generally learn more from reading someones experiences than straight facts.

And tonight I actually purchased my first complex valuation which gives me the selling price for the last 10 units in the complex, all the unit owners etc...

Get your knowledge up to scratch and then you will start to feel more comfortable when looking to purchase your first property.