All Forum Posts by: Chuck Hollowell

@Andrew Postell thanks for pointing me to your article. I’ll check it out. 

I'm getting set to do my first BRRRR deal. After talking with my mortgage broker, my plan is to use a HELOC to buy the property for cash, do the needed rehab, and then use the delayed financing exception to repay the HELOC. Hopefully, if I buy at the right price, make some improvements, and with 75% LTV, I will be able to fully pay off the HELOC with the delayed financing. That's the goal.

My understanding is that the key things to keep in mind for the delayed financing is (1) it has to be done within 6 months of purchase and (2) you have to use the funds to repay the source of the original purchase amount (in this case, the HELOC). So, the mortgage broker's advice was to pull out the EXACT amount of the purchase price from the HELOC to keep the delayed financing process simple.

This all makes sense to me and sounds like a good strategy. I wanted to throw it out to BP to see if others have done this and if there’s any advice, warnings, etc. Thanks in advance!

I plan to buy with cash (not hard money), do some rehab, rent, and then refi. Rehab would be on the lighter side, nothing too major. I plan to buy and hold. 

@Laura Shinkle Not yet. Let me know if you have any leads. Thanks!

I am looking to start using the BRRRR strategy in the Charlotte, NC area. I need to find a lender who will help with the refi after I have the property renovated and rented. I know many will require a seasoning period, but others may not. I'm obviously looking to pull the funds out sooner than later, so any help in pointing me in the right direction on potential lenders for this would be appreciated. Thanks!

Welcome to BP. There's no shortage of info and experienced investors here!  Be sure to check out the podcasts. 

Happy investing!

Welcome to BP!  I am in Cary and am getting started as well. Tons of great info here. 

Chuck

@James Hutson 

I'd definitely be interested in a BP meetup.  Thanks for organizing.  I'll mark my calendar and look out for an update.

Best regards,

Chuck

Congrats!!  I am under contract to purchase my first rental, so I will be interested to hear what more seasoned investors have to say on this topic. A couple of thoughts for you...  Check out the Ultimate Guide to Tenant Screening on BP. You also may want to pick up a book on landlording. I just got Landlording on Autopilot by Mike Butlet after seeing good reviews on BP.  Happy investing!

@Johnny Kang 

Thanks for the advice. I am curious how you can continue to control the short sale deal if you bring it to an agent and it then gets listed on the MLS. What happens if there are then multiple offers and someone outbids you?