All Forum Posts by: Will Coleman

Howdy all, 

I am looking into applying for an RLOC (revolving line of credit) in order to flip houses in the DFW area. I am looking for some advice. I currently have two houses with some equity that I could use as collateral but I would rather leave them out of the equation. My question is this, if I create an LLC as the borrower for the RLOC and I have an individual with a high net worth be a guarantor on the RLOC and I show a strong business plan outlining the cash flow from the purchase and sale of properties will the bank feel comfortable lending to me not using the houses as collateral? Has anyone done something similar to this?

I am thinking a $200k RLOC, would look for houses under $100k needing about 20-30k of rehab with an arv of at least 50k more than purchase price. Those are just rough numbers, let me know what yall think! 

@Moises B. Yes it included everything, we had to repair some of the foundation as well so that made the price a bit higher than expected. 

@Jason D. Thanks! The property is held in my personal name and I am managing it myself. I plan to put the property in an LLC in the future but I haven't looked too much into to it be honest.

@Clayton Danly I used finishing touches remodeling http://www.finishingtouchesremodeling.com/  They did very good work however took a bit longer than I expected. I would work with them again but next time I plan to get multiple bids from contractors just to be safe. 

@Rodney Sums Sure, the mortgage on the property is $950, and the rent is $1450. Yes in my opinion that is really good cash flow, keep in mind I take about $150 of that and put it into savings for cap ex and vacancy expenses in the future. 

@Collin Garbarino I used Ron Blume at www.dfundingsolutions.com. I would highly recommend! 

Thanks everyone! 

@Kenneth Cowan Yes i appraised right at 154k! 

@Devon Martin The renovations took about three months, longer than we were expecting but gotta love contractors. 

@Dan Shelhamer Congratulations to you as well. I'd love to see your property! And yes the rehab was hard money but we refinanced to conventional. 

@Nicole A. @Account Closed Yes the total cost was 115K (purchase and rehab) the hard money loan covered $107k. So I had to pay the difference plus closing costs, I have my realtors license so I didn't have to pay a realtor which helped. Total out of pocket was about 12k. So in summary 35K in equity, cashflowing $400 a month with 12k down. I hope this helps. 

Howdy all, 

I thought I would share my property that I implemented the BRRRR strategy on. We purchased for 90k put about a 25k rehab budget into it with a hard money loan. Refinanced with an ARV at about 150k. It's currently cash flowing $400 a month with approx. 40k in equity in the house. Check out the before and after pictures. @Robbie Wyness 

Wow looks like a major project! You've inspired me, I'm gonna post my renovations on here and I'll tag you in it to see the flip I did a few months ago. 

Looks like an awesome project! Thanks for sharing and good luck, I would love to see the final project. 

@Starr Munoz Yes as @Will Pritchett said (good name by the way) it s very difficult on the MLS right now. Have you put any thought into a mailing campaign? While you are deployed your could send out a letter once a month to multiple houses or neighborhoods you have identified. You could have a family member or maybe a really good realtor help field calls. That way you may be able to market yourself while you are away and have possible options when you return.

Hello Maria, 

I am in a similar situation to you, I own two single family rentals and I work a full time job in commercial lending. While what @Andrew Kerr said definitely makes sense and is a good option I would even further the point of @Corby Goade by saying that depending on your capital position there are groups you can join that allow you to syndicate or invest passively in multifamily. Meaning that you can pool your money together with others to get deals that are 60+ units. This way you can contract out management. Being a nurse and managing a 2-4 unit deal may be very difficult. Right now I am simply saving up and interviewing people who invest in multi family so I can learn from them. I hope this helps, if you have any other thoughts I'd love to connect.