Real Estate Deal Analysis & Advice

Meet the Investors: BRRRR-ing 3 Deals in 6 Months With Dan Weidman

Expertise: Real Estate Investing Basics
35 Articles Written
real estate investment small plastic property models on wooden surface with notepad, calculator, smartphone, male hands in view

I’m going to introduce you to a friend of mine and a fellow investor here in Fayetteville, North Carolina. We’re going to go through a BRRRR property. We’ll tell you his whole story, how he got started in real estate, and how it can relate to you.

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This story is actually interesting because Dan and I met through my contractor. But he met my contractor when he heard me on BiggerPockets Podcast episode 301, universally acclaimed to be their best ever podcast produced. (I don’t know if you know that, but that is the best one. I’m not sure if they even know it, but it’s actually true.)

In the video and post below, meet Dan. We’re going to go through his latest property. We’re going to talk to you about the details, his strategy, and how he implemented it, as well as the story about how he solved a money problem he encountered and how he uses real estate to fund his future.

Let’s meet him.

The Investor

Hi, I’m Dan Weidman. I’ve been active duty military for 14 years, and I’ve been real estate investing through the BRRRR technique for about two-and-a-half years here in Fayetteville. I’ve got a wife and three kids, and I’m looking forward to showing you my next BRRRR investment.

I started to invest in real estate because we were looking to do some generational wealth-building. When I grew up, my family was kind of poor. Both my parents were teachers. My mom was on WIC for the first couple of years that we were kids. And I didn’t want my kids to have to go through something like that.

I listened to one of the BiggerPockets Podcasts, and Brandon Turner had said that he was using real estate investments to do as much. He was going to buy a triplex for his daughter. So, my wife and I came up with an idea: How do we continue a trend like that? How do we move forward with that kind of investing?

And the idea was real estate investing and utilizing one house per kid that would be their college fund, in addition to any kind of savings we could have.

Related: Meet the Investors: Real Estate Agent Turned Investor Dawn Brenengen

I found the BiggerPockets community first when I was deployed to Afghanistan. My wife and I had talked about doing some kind of investing strategy before I deployed and started to research rental properties. Eventually, the BiggerPockets Podcast and the website came up through a Google search.

What do you have to do in Afghanistan besides go outside the fence or work out? I just happened to listen to every single BiggerPockets Podcast when I was at the gym, one all the way through about 270 at the time.

After I redeployed back home, I came to Fort Bragg. I was working out at the gym again, listening to BiggerPockets like usual, and Alex Felice’s podcast—I think it was episode 301—came up. He discussed a lot about some great contractors he was working with and the delayed financing technique. I wrote those down promptly.

We were able to implement his strategy, along with the BRRRR strategy, into essentially buying three houses within six months from listening to that podcast.

BRRRR

The Property

Let’s talk about my latest BRRRR investment property. It’s similar to the other ones that I’ve done in the past.

We do most of the same rehab protocol that we have with other BRRRR properties. I like the BRRRR strategy because it allows us to rewash the same money investment after you do the rehab and the refinance and the repeat. That repeat is great, because I’m taking the same investment that I had from the first property and plugging it into the next one.

So, rinse, repeat, keep going. And it’s going to build up the generational wealth that we talked about.

I didn’t have trouble finding a contractor for the rehab portion, thanks to the BiggerPockets community. I met my Realtor through the BiggerPockets community, through a chat session. He introduced me to my general contractor/property manager, and he’s done a fantastic job.

Real estate investing is a team sport. You can’t get it done without having a great set of team members that work with you. Trust, confidence, relationships, and people, that’s where it’s all at.

Related: Meet the Investors: Full-Time Pilot & Long-Distance BRRRR Investor Frank Culick

One of the challenges that people are faced with is inaction. That’s probably one of the tougher things.

Also, when they don’t have proper focus on something. They’re not asking themselves the right questions. And if you keep asking yourself the right questions, you’re going to find the right answer.

Don’t ask terrible questions, but ask the right things. So, “How do I get this done the best way?” Not, “Why does this always happen to me?”

Before working through the BiggerPockets community. I really had no knowledge whatsoever of rehab. I learned that through my general contractor, who I met through BiggerPockets. It’s been a great learning experience that we’ve been able to develop. And so I can understand how the construction rehab process works now.

The house looks great. I trusted in my relationship with my GC. He’s got a lot of experience in the rehab world. So he said, “Hey, we need LVP for floors, we need a blue accent wall, we need stainless steel appliances, and that will get people good flips or good rents.”

So, trusting his experience made that process a lot easier.

The Money

I think as far as challenges that went with the refinance aspects, I probably could have done the numbers a little bit better. It was my first real cash-out refinance. Doing a conventional loan, the interest rate was a little bit higher than what I anticipated.

One of the better strategies that we have now implemented has been to talk to a lender ahead of time before purchasing, so they understand what kind of asset you’re looking at investing in. They can give you some good tips and tricks for what kind of potential loan products you can get.

It works really great because you can usually find a better rate if the lender is implemented into your acquisition process earlier rather than later to help you get your cash out. Refine, repeat.

Real estate investing for me has been somewhat easy. There have been challenges associated with it. But luckily, through working with a network of good people through the BiggerPockets community, I was able to meet great folks who turned their decades of experience into a couple of days of communication. I could then implement their techniques and style into a good systemized process that has started to help me realize my financial goals.

For my first deal, I utilized the TSP loan, which is essentially a 401(k) retirement program for military and government civilians. Not everybody has $50,000. In order to start fulfilling your investment dreams, you should start early, start investing early, start your own 401(k), and get the ball rolling.

Hand of Business people calculating interest, taxes and profits to invest in real estate and home buying

The Advice

You’ve got to start soon, otherwise you’ll never make it happen. If I’m a beginner looking to get started, I would reach out on the BiggerPockets network and try to find people in your local area.

REIA meetings are good. Just search some of the forums and don’t be afraid to reach out and talk to somebody. Maybe send a message saying, “Hey, my name’s Dan. I’m looking to invest in Fayetteville.”

That’s how I met my Realtor here, who got me into BRRRR investing in Fayetteville. Don’t be afraid to communicate. That’s actually one of the biggest challenges in life, talking to others and working with them.

Getting your spouse or significant other on board is crucial. It’s important. You have to work together. It was me coming up with the idea. It was just a thought back in 2018 and through data and research, reading the books, and just being open and communicating our goals to each other, we came to the same conclusion as a team to want to do real estate investing.

My name’s Dan Weidman, and I believe real estate investing is a team sport. Now go build your team.

How did you assemble your investing team?

Let us know in the comments.

Alex has spent his career in sales and finance industries and now invests in rental real estate along with working in the underwriting department at a bank in Las Vegas. Alex is an expert in long-d...
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    Michael Spine Real Estate Broker from Holly Springs, NC
    Replied 15 days ago
    Good advice: to talk to a lender prior to purchasing your investment with a plan to refinance. - Thanks, Michael
    Dave Rav from Summerville, SC
    Replied 2 days ago
    I like that idea too - connect with a lender PRIOR to the BRRRR
    Daniel Weidman
    Replied 13 days ago
    Thanks Mike! Definitely conducing your acquisition planning up front and talking to your integrated team early is a great tactic.
    Daniel Trippett
    Replied 14 days ago
    And get it in writing. Had an incident and when it came down to it the bank backed out bc it didn’t meet their standards. Found another that would work with me and gave me 70%
    Peter McDonough Rental Property Investor from Huntsville, AL
    Replied 14 days ago
    How do you complete the refinance before the six month seasoning period?
    Richard A. Investor from Fayetteville, NC
    Replied 6 days ago
    There is a way to refinance without the seasoning period and without delayed financing (which is a PIA IMHO). We've used this method and it works. It is a "rate-and-term" refi and not a "cash-out" refi. More details here... https://www.biggerpockets.com/forums/48/topics/460294-how-to-cash-out-1-4-unit-property
    Andrew Mathis
    Replied 14 days ago
    Look up delayed financing, it’s the only way that I’m aware of but the key thing to understand is you can only pull out the cost of the property and closing cost not the rehab. And it’s not a widely used strategy as Quicken Loans is the only lender local and nationally out of 20 I’ve searched thus far that does it. I have a contact at Quicken if you would like the n info.
    Joseph M. Rental Property Investor from Sacramento Area, CA
    Replied 14 days ago
    That is a good question as banks have been a stickler on the seasoning requirements. Some are moving to do 1-year seasoning, even on all cash purchases (which I found quite odd).
    Curtis Crawford
    Replied 14 days ago
    Hello Joseph.. my name is Curtis and I am just getting started in the real estate investment business. I live in Rancho Cordova, and work in Folsom..I’m just in the got to do something to make it happen baby steps phase. Maybe I could pick your brain a little bit, if you don’t mind.
    Daniel Trippett
    Replied 14 days ago
    It’s all about the bank you are working with. I’ve had several tell me as long as there isn’t a lien on the property they’ll do a cash out
    Brad Coyne Rental Property Investor from Butte, Montana
    Replied 14 days ago
    I have found in my area that my local lenders do not want to do a cash out refinance on a property that I had bought and rehabbed with them as the original lender. I have had to buy the properties with one lender and then refinance it with another. This has worked a couple of times for me but now it’s getting more difficult. I think the easiest way to do it is to use one of the actual Real Estate Lenders (mostly online) rather than a bank.
    Devan Williams
    Replied 14 days ago
    Dan, Wish I could’ve been bitten by the BRRRR bug when I was stationed at Bragg! Congrats and I hope to follow suit soon over here at Campbell. Devan
    Daniel Weidman
    Replied 13 days ago
    Thanks Devin! Haven't been there personally, but I've heard that Clarksville is a good investment area.
    Dami Fadipe Investor from Dallas, TX
    Replied 14 days ago
    Love it. Looking at a few multifamily properties in Reynoldsburg OH as a second purchase. If you’re an investor in that area let’s chat.
    Kevin Coleman from Philadelphia, Pennsylvania
    Replied 14 days ago
    Hey Dan. Loved the video. I’m in same boat and while I have a multi-family, the wife and I are looking to expand using my TSP. You mind running through the numbers on your first one? Did you use hard money lender for Reno or are properties cheap enough there you can finance it all with the $50k? Thanks man and thanks for your service!
    Daniel Weidman
    Replied 13 days ago
    Hi Kevin, sure thing: -PP (77) + rehab (15) was TSP+saved up deployment cash (was TSP loan in 2019, Gfund rate at the time was 2.5% amortized over 5 years) -ARV was 123k -Cash out refi was ~92 so after closing costs I left about 1.5k in the property.
    Brian Sylvester New to Real Estate from Knightdale, NC
    Replied 14 days ago
    This is awesome. Thanks a ton for sharing your story Dan. I have committed to finding my first rental and am very interested in BRRRR. I am also in a similar life situation: married with the 3 kids and really wishing someone had told me in my early twenties that I could build wealth outside of a 9-5 job :). But there's no time like NOW to start and change things, right??
    Daniel Weidman
    Replied 13 days ago
    Definitely brother!
    Kevin Hill Lender from Boulder, CO
    Replied 14 days ago
    Traditional lenders and banks dont always understand what a Real Estate Investor is trying to accomplish and the issues that may arise during a BRRRR transaction. Its important to work with a lender that is investor friendly. Some lenders can offer loans for both the rehab and the permanent financing once the property is complete. Its definitely wise to learn as much as possible about the loan programs available to you and make sure everything will fit before getting too far into the transaction
    Terry Rummel
    Replied 14 days ago
    Terry Rummel from Hanover, PA here. Thank you for your service to our country and for the investment inspiration! After reading Brandons book on real estate investing i went ahead and purchased my first rental at auction with cash from my 401k. We are looking at purchasing again but this time i wint have the help of my 401k downpayment. Not sure how to do no money down financing yet but im researching. So much to learn! Thank you again for your post!
    Daniel Weidman
    Replied 13 days ago
    Thanks Terry!
    Christopher Stacy Rental Property Investor from Wiesbaden Germany
    Replied 14 days ago
    Great article Dan! Glad you are off to the races using the BRRRR strategy. I am in the Ft. Gordon market since I have been stationed there a couple of times. Sort of a no Bbrainer, but wish I started earlier. I have 3 SFR now and looking for my 4th. Locked in a sizable HELOC a couple of weeks ago and with some savings stashed, I am ready to pull the trigger. Getting wifey on board is a challenge sometimes, but this is essential. Good luck on your future endeavors!
    Daniel Weidman
    Replied 13 days ago
    Thanks Chris. Quoted from my GC: Team work makes the dream work!
    Andrew Mathis
    Replied 14 days ago
    We love them but geeez this is absolutely one of the biggest challenges thus far!!!! (Spouses...)
    Joseph Leibovitch Rental Property Investor from Baltimore
    Replied 14 days ago
    I am here in Baltimore MD. I have done just 2 deals but have always used a "bank". The success I have had has been the fact that my loan officer and the lender are predominantly working with residential investors. My loan officer has been nothing less than awesome and has given me the time I needed to get my numbers worked out. I have a BRRRR as we speak. I am hoping to close on the refi middle of October.
    Ron Mcbride
    Replied 14 days ago
    who is your bank I'm in maryland
    Jag Takhar
    Replied 14 days ago
    sorry guys whats cash from 401 K ( your savings)>???????
    John Wright Real Estate Agent from Cincinnati, OH
    Replied about 1 hour ago
    You can borrow from your 401k. Usually 50% of it or 50k whichever is the larger amount. Investors use this liquidity to pay the down payment on property.
    Dean Galmidi
    Replied 14 days ago
    I am a new investor. I am trying to build a team in Akron OH for the last 2 months, and unfortunately without succeeding. I had to pull out of 2 contracts, because I could not get an estimate for a rehab, from even one contractor.
    Eric Payne Investor
    Replied 13 days ago
    Dean, Offer to pay the contractors. Look up some of the best ones and offer $200 to $500 for an estimate. I own a construction company out of Grand Rapids, MI and own 12 residential doors and a commercial building. If a new investor calls me for an estimate, I won't even go to a house they don't already own without payment. Once you get established with a contractor, they will gladly meet you and estimate your potential projects free of charge.
    Dewayne Stiers Investor from St. Charles, MO 63301
    Replied 14 days ago
    Will you share your numbers on all 3 properties and how the money flowed and is flowing?
    Daniel Weidman
    Replied 13 days ago
    Sure thing Dewayne; should be in my profile: https://www.biggerpockets.com/users/DanielW204
    Bryan Mitchell Rental Property Investor from Columbus, GA
    Replied 13 days ago
    Dan, that’s a great idea about getting the lender involved from the very beginning.Most people do it to get preapproved for a loan, but your rationale is thinking bigger.
    Daniel Weidman
    Replied 13 days ago
    Thanks Bryan!
    Dimitri Paspalaris from Newport, RI
    Replied 13 days ago
    I have a question. Why would you pull from your TSP? I thought you paid a penalty for pulling money out and then paying taxes on top of it.
    Daniel Weidman
    Replied 13 days ago
    Dimitri, from what I'm tracking; there shouldn't be a penalty while still active duty. https://www.tsp.gov/loan-basics/loan-types-and-terms/
    Dennis Breese from Loma Linda, California
    Replied 13 days ago
    Nice, it's always encouraging to hear people's stories and methods they used!
    Andre Sucharew
    Replied 13 days ago
    Hi. Just a question.. How do you buy another property when you have a loan on a current property. What bank is going to approve you for it? I would like an explanation please.
    Andre Sucharew
    Replied 13 days ago
    Why did my question get erased?
    James Kovarovic Investor from Dover, Delaware
    Replied 12 days ago
    Congratulations on getting a great start! Any recommendations on how to get your spouse on board? I'm in the military as well, and my wife is resistant to the idea after we had a bad real estate experience with a primary residence (2008 happened) despite having another rental which is working well. She's scared and locked into the idea that the 8-5 job and IRA is the only way to acquire income and retire. Any suggestions?
    Andre Sucharew
    Replied 12 days ago
    Why does my question keep getting deleted?
    Andre Sucharew
    Replied 12 days ago
    Why does my question keep getting deleted?
    Andre Sucharew
    Replied 12 days ago
    Why does my question keep getting deleted?
    Carlos Garcia Investor from Florida
    Replied 11 days ago
    Good on ya for recruiting wife. That's what I did. Never looked back. The team is always stronger than one.