All Forum Posts by: Account Closed

Hi Perry Farella it sounds like the Homestyle loan would be ideal to start with brrrr. Would a first time investor qualify for the same rate and down payment? Also, if you don't mind me asking, what are the downsides to this loan? Thanks for being so helpful

@Marco Santarelli Thanks for participating in the forum and addressing investors' concerns. I would just like to add on to what @Brian Naumann asked and you responded; What happens to the investors that invested with a not-so-good provider/manager? A concern I had when I drove up to Tampa to meet with the local provider was whether or not this provider was a ' Norada-seasoned' provider. I believe the Tampa local provider had just been working with you for a short time and with that, there's an inherent risk that this provider may turn out to be a bad egg.

On a side note, does Norada work with investors that are interested in rehab projects? For example, instead of purchasing once tenant-ready, I'd purchase at distressed and use Norada for rehab and PM.

@Rich Weese A- today, C-further down the road, while enjoying B and D along the journey

Welcome @Joseph Brown! I'm also a newbie investor but have learned so much just participating on the forums. It's great that you've landed on the BRRRR strategy so fast. It took me a couple of weeks to fully understand the benefits of using it. I recommend setting up alerts to follow all types of discussions surrounding BRRRR, or anything else of interest to you, and you will definitely pick up so much knowledge!

@Billy Brown so then it won't be 50-50 for the costs. The lender will fund the entire project and then get half of the cashflow. The other person would simply bring the deal to the table. Correct?

Thanks @Michael Hastings!

@Nick McKinnis Great thread! I never even knew scenario #2 exists! It definitely pays off to participate more on BP!
I am a prospective out of state (actually country) investor and when I began reading into REI I was almost sure I wanted to begin with turnkey properties. Given the right provider and management company, I don't think it can get any easier to acquire a rental property. Plus, if you invest in the right market some returns can be quite fair. However, a bit more into my REI education I learned about the famous BRRRR strategy and now I can't think of any other way to get into REI other than BRRRR. If I can buy more with less then why choose otherwise? So, I personally would prefer #2 any day.

@Michael Noto I wouldn't understand the intricacies of a rehab project, but that would not deter me from using scenario #2. Due diligence and building a win-win relationship for both parties is enough reassurance for me to be more hands-off the rehab project. But of course, regarding expectations, an experienced investor would better understand when things don't go as planned whereas as Jay said a new investor may go off when things don't go as planned. I think clear communication and just knowing that things may and do go wrong are vital before jumping in. And of course, it ultimately depends on the investor and their strategy/goal.

@Michael Hastings I did not know the BP marketplace had rehab quotes as well. I'll start doing the same analysis to get comfortable with how the numbers work, like you mentioned. Good luck on your live rehab estimate and be on the conservative side, just in case :) If you don't mind, please post on what you thought. I'd be very interested in knowing what it 'feels' like to go do a live inspection with such limited knowledge.

@JD Martin I'm curious to know what happens once you're 'finanially free' and you go do a cash-out refi?

@Barry Rupisan Thanks for starting this thread. I'm also looking into how I can start BRRRR. Since I'm abroad I was just planning on saving enough capital to purchase and rehab with. However, that means I'll be on the sidelines for a bit, which is not good if there are deals to be had!

@Billy Brown So instead of funding thru private lenders, you cut them in on the deal and give them half the cashflow?? How's that experience been? I would have imagined a private lender would rather the 12-15% in interest than having an income producing asset... I guess in that case you can call them a business partner as well. Would you also bring in half of the capital needed or would they fund all and then get half? Either way great approach! Just further reinforces no need to wait on sidelines much longer.

@Steve K. Would a HML really fund your first BRRRR? That's a lot of risk for them to bear. Unless you're putting down 50% or more, which in that case @Billy Brown 's partnering relationship works out better (less holding costs, less risk for paying back the HML).