All Forum Posts by: William Barr

Hello! I am looking to lower the cost of closing on the refinance of my BRRR deals. Right now I am using 80% LTV to refi and paying separate origination and processing fees at closing. My question is, would it be beneficial to reduce my LTV refi to say 78% and then use my remaining debt capacity (up to 80% total) to roll in these closing fees? Example:

A)

Purchase Price: $150,000

Rehab: $50,000

ARV: $250,000

80% LTV refi: $200,000

Closing fees: $5,000

Equity created: $50,000 (20% x $250,000)

Cash left in deal: $5,000 (closing fees)

B)

same info as above except;

78% LTV refi: $195,000

Closing fees added to refi: $5,000

Equity created: $55,000 (22% x $250,000)

Cash left in deal: 0

Or should the equity created in B) be 20% because we are still leveraging net 80% total debt (78% loan + 2% closing)? Either way, am I getting the same return or better with no cash left in the deal by going B) - what am I missing here?

Thanks!

I am in need of a good general contractor that can work around the greater Atlanta area (likely North East quadrant). My partner and I are aiming to acquire several distressed SFHs this year and need to find a reliable contractor willing to tag along.

Does anyone have any referrals or best ways to get in touch?

Thanks!

@Andrew Postell  Wow! Great stuff here. Thank you for taking the time to help me learn. I'll be sure to give your other post a read as well.

Hello!

I am looking for a lender to use for BRRRR deals that will allow me to refinance without a "seasoning period" on the original mortgage. I know that the typical time period to refinance is 6-12 months, but I've heard of people finding some lenders/banks that will allow the investor to refinance as soon as the property is rehabbed and rented.

Where should I be looking for these type lenders?

Thank you!

Hello!

I am trying to better understand the analysis process for BRRRR deals. Specifically, when looking at a potential property to BRRRR, how does one evaluate how much rehab $$ is needed to bring it to an ideal ARV? Is ARV just the value of the property based off of a cash flow analysis at market rents (i.e. post rehab), and therefore you should only spend enough rehab $$ to bring the property up to market rents?

If so, how do you determine how much rehab $$ you'll need to bring it to market rent before you put your offer in?

Bonus question - whats the best way to find good wholesalers (3/4plex type), or best way to get BRRRR property dealflow outside Zillow?

Thanks in advance!

Charlotte RE investors... trying to find out more about the local brokerages. I know some of the big names in the business like CBRE and JLL, but they seem to have their buyers lined up already. What are some good firms in the area for finding apartments in the $5-$20M range that welcome new buyers?

Thanks so much!