All Forum Posts by: Zach Westerfield

@Erika Lee you can DM me

@Will Fraser looks like they are only located in Oklahoma, Arkansas, Missouri and Kansas

Im looking for the best place to buy appliance packages in georgia or near the atlanta area. For my previous flips/renovations i have bought from lowes/home depot on holidays when they do the big sales. However they are a pain to deal with, and prices dont seem to be as good as they used to be. any suggestions where to buy? i am willing to buy several sets at once if it means savings. Right now i would be buying 3-5 per year. 

If it is foundation issues, 10-20K for repairs is not uncommon. the good news is most foundation issues are repairable, but can get expensive. Yes, if your foundation is shifting it can cause your tile floors to crack up. Question: when the problem came back, was it the same tiles that were loose again? or new tiles that were not repaired? if the grout was laid too thin when the tile was installed, they can come loose like you are mentioning. Loose subfloors can also cause that. Have you noticed any cracks in the walls, or sticking doors and windows? those are typically symptoms of shifting foundations as well. My recommendation is get 1-2 more opinions. Make sure at least one of these is a foundation specialist. Most companies will give you an assessment and quote for free, so there is nothing to lose. Also, i would recommend at least one of these be an established company with great reputation. their quote will likely be more expensive, but you can trust a better assessment vs saving a few bucks from a craigslist contractor. 

BRRR is a great strategy for both new and experienced investors. It allows you to accelerate your growth while mitigating risk through long term rentals. Atlanta is a great market, and single family investing can be very dependent on the local market. My advice is to find a good middle class neighborhood that is growing but still has good rent rates and affordable properties. Build a team there then get started. Good luck!

For BiggerPockets pro members, the new Insights page has a wealth of data to help analyze and identify new markets. Definitely worth the membership fee. Other than that, talk to local planning/zoning offices. Also, if you can find a real estate agent who has been in that market for a long time (and is good), they typically know which large parcels of land have been sold or are under contract for development. 

Yes you can. BRRR is just another name for value add strategy. It has been around forever, especially in the commercial world. The basic concept behind value add is you purchase an asset for a certain amount, and at some time in the future the value of that asset is more than your purchase price. In turn you have created equity. In the traditional BRRR, the value is added by improving the property. However, value can be added in other ways as well. Market appreciation, increasing NOI (for commercial properties), repurposing properties, etc. For single family turn-key properties, you have to find a way to add value other than renovations. A few suggestions: look for properties that can be converted to a higher use, and classified commercial. Consider improving the property, such as an addition (this is still a renovation, but less risky than buying a run down property for rehab). Or the other alternative is to buy the property below value, creating instant equity. This is the easiest way to increase equity, but hardest to find.

Remember, a BRRR doesn't have to be perfect to be a good BRRR. If you could do a standard deal with 20% down payment, any amount of capital you leave in the deal below 20% is still better and will accelerate your growth.

Are you using it for a down payment with a conventional mortgage? If so, talk to your bank and make sure they are okay with that. 

Other than that, its just matter of which terms work the best for you. A HELOC cuts out the 3rd party and makes it easy to adjust terms personally as you go.

Better yet, use both and buy two properties!

I have used both. Hard money will be the most expensive, but the most emotionless. Its all about the numbers and the deal. Even though its more expensive, you should know those costs up front so simply underwrite those into the deal. 

Friends and family can be tricky. Its really a case by case basis with that specific person. The best advice I can give is make sure everything is on the table and understood up front. Put this in writing. whether its officially recorded or not, at least have it documented on something you both sign. I even did this for a private money loans with my parents. 

Make it clear up front

1. the term you plan on borrowing for

2. what it will be used for, including property address

3. payment and interest terms

4. end game or exit strategies

5. what the borrower and lenders role is (lender vs equity partner)

the last 2 are important to preserving a relationship. have plan up front for if things go wrong. also, make sure they are aware they are a lender, not equity investor on the property, and you control all aspects of the project. in return they get a steady return. 

private money from friends/family can be one of the best sources of capital, but you have to understand the person you are approaching. i have very close family members that i would never ask to lend because i do not want to jeopardize the relationship based on their personality. The ones that i have approached, i knew trusted me absolutely. 

Have you considered a line of credit for the inherited property? Pros - lower fees up front, typically faster, and in most cases you only pay interest when you take the money out, making it a defacto "charge account". Cons - usually have floating interest rates, so longer term there is more risk if/when rates go up. 

Its hard to say whether your numbers are good or bad without all the details. Just listen to the podcasts, there are numerous ways to invest in this industries, and bad numbers for one person could be great for someone in a different situation with different goals. For example, as a BRRR investor, CoC is not usually a relevant metric to consider. My goal is to get into rental properties with no money in the deal. if i achieve that, my CoC is infinite. However, if i cash flow $1 per year, it may not be a good deal. Unless that same property is work $500,000 and appreciating 10% per year. See what i mean about every situation being different? I recommend becoming familiar with CoC, return on equity, and Internal Rate of Return. Then determine which metrics best measure your desired performance. I hope this isnt too confusing, this topic can definitely lead down a deep hole of discussion quickly.