Looking for my 1st BRRRR Deal

17 Replies

Hey All - Newbie Here.

I've narrowed down the goal for my first deal. I want to land a BRRRR deal in Tampa Bay/Central Florida.

I’m aiming to get into a distressed property at $100k or less (all in purchase price + rehab) in that area. End goal? $2-$300 monthly cashflow.

I’m looking for a realtor or investor that can advise on the market and make introductions to private lenders/hard money to structure a $0 down deal.

I’m listening... 👂🏾

@Jonathan Mentor thats exactly how I got started here in Columbus. I house hacked and BRRRR'ed a duplex. I was fixing up everything inside, then after a year I rented it out, cashed out, and had enough money to spend on my next investment!

However you will be hard pressed to find a $0 down method, try an FHA thats about as close as the conventional lending side comes to low and no down.

Originally posted by @Jonathan Mentor :

@Steven Wilson. Even with multiple lenders? Combining a HML with a Private Lender based of of the ARV of the home?

Depends on the HML. But if they will lend you 90%, they're going to wonder where the 10% DP is coming from, if your leveraging that too? it spells RISK very clearly . Even HML's have underwriting criteria.

@Jonathan Mentor you should check out Matt Porcaro. The 203k Way.  He's on this site.  You can get into your first home for 3.5% down, including reno costs(up to a certain amount). If you do find a $100k building, that's $3,500. Which ain't too shabby.

Hi Jonathan, 

I'll be honest - It is probably not a good idea. Especially since you are a newbie. This is coming from a fellow rookie, I own just 3 properties but I did extensive underwriting on possible scenarios for BRRRR and 0 down deals.

A 0 down deal means you will be 100% leveraged. So the room for error on estimating your max allowable offer and ARV is very little - actually none since every cent that you miss is negative equity on your part. It could work but like the others say - this is too much risk.

0 down deals are okay for experienced investors with a lot of reserves when **** hits the fan. The only way it may work is if you source your own deal and you find a home run where you have significant equity even before rehab - this can be your cushion.

Good luck!

Originally posted by @Bernard Sanga :
Hi Jonathan, 

I'll be honest - It is probably not a good idea. Especially since you are a newbie. This is coming from a fellow rookie, I own just 3 properties but I did extensive underwriting on possible scenarios for BRRRR and 0 down deals.

A 0 down deal means you will be 100% leveraged. So the room for error on estimating your max allowable offer and ARV is very little - actually none since every cent that you miss is negative equity on your part. It could work but like the others say - this is too much risk.

0 down deals are okay for experienced investors with a lot of reserves when **** hits the fan. The only way it may work is if you source your own deal and you find a home run where you have significant equity even before rehab - this can be your cushion.

Good luck!

What do you mean "I source my deal" and home run is 30% OFF the market value because it's a run-down house? 

 

Originally posted by @Ari Hadar :
Originally posted by @Bernard Sanga:
Hi Jonathan, 

I'll be honest - It is probably not a good idea. Especially since you are a newbie. This is coming from a fellow rookie, I own just 3 properties but I did extensive underwriting on possible scenarios for BRRRR and 0 down deals.

A 0 down deal means you will be 100% leveraged. So the room for error on estimating your max allowable offer and ARV is very little - actually none since every cent that you miss is negative equity on your part. It could work but like the others say - this is too much risk.

0 down deals are okay for experienced investors with a lot of reserves when **** hits the fan. The only way it may work is if you source your own deal and you find a home run where you have significant equity even before rehab - this can be your cushion.

Good luck!

What do you mean "I source my deal" and home run is 30% OFF the market value because it's a run-down house?

 

It means you have to do your own direct mail campaign, drive for dollars, cold calling or ring-less voicemail are some strategies/ you talk and buy directly from a distressed seller. Note: I said distressed seller not property. These are sellers who are in pre-foreclosure, in a middle of a divorce, have financial difficulties and etc. Goal is to help first, get a win-win for both parties.

 

Originally posted by @Bernard Sanga :
Originally posted by @Ari Hadar:
Originally posted by @Bernard Sanga:
Hi Jonathan, 

I'll be honest - It is probably not a good idea. Especially since you are a newbie. This is coming from a fellow rookie, I own just 3 properties but I did extensive underwriting on possible scenarios for BRRRR and 0 down deals.

A 0 down deal means you will be 100% leveraged. So the room for error on estimating your max allowable offer and ARV is very little - actually none since every cent that you miss is negative equity on your part. It could work but like the others say - this is too much risk.

0 down deals are okay for experienced investors with a lot of reserves when **** hits the fan. The only way it may work is if you source your own deal and you find a home run where you have significant equity even before rehab - this can be your cushion.

Good luck!

What do you mean "I source my deal" and home run is 30% OFF the market value because it's a run-down house?

 

It means you have to do your own direct mail campaign, drive for dollars, cold calling or ring-less voicemail are some strategies/ you talk and buy directly from a distressed seller. Note: I said distressed seller not property. These are sellers who are in pre-foreclosure, in a middle of a divorce, have financial difficulties and etc. Goal is to help first, get a win-win for both parties. 

Don't you use the mls at all? Are you doing the direct mail alone or through companies?


 

Originally posted by @Bernard Sanga :
Originally posted by @Ari Hadar:
Originally posted by @Bernard Sanga:
Hi Jonathan, 

I'll be honest - It is probably not a good idea. Especially since you are a newbie. This is coming from a fellow rookie, I own just 3 properties but I did extensive underwriting on possible scenarios for BRRRR and 0 down deals.

A 0 down deal means you will be 100% leveraged. So the room for error on estimating your max allowable offer and ARV is very little - actually none since every cent that you miss is negative equity on your part. It could work but like the others say - this is too much risk.

0 down deals are okay for experienced investors with a lot of reserves when **** hits the fan. The only way it may work is if you source your own deal and you find a home run where you have significant equity even before rehab - this can be your cushion.

Good luck!

What do you mean "I source my deal" and home run is 30% OFF the market value because it's a run-down house?

 

It means you have to do your own direct mail campaign, drive for dollars, cold calling or ring-less voicemail are some strategies/ you talk and buy directly from a distressed seller. Note: I said distressed seller not property. These are sellers who are in pre-foreclosure, in a middle of a divorce, have financial difficulties and etc. Goal is to help first, get a win-win for both parties. 

 

Distressed sellers going through a divorce with financial difficulties? Yes, I agree BUT to determine the final price of the home which will be difficult to discount, will be determined by analyzing the marriage balance sheet from the divorcing couple which list all assets and most importantly the couples liabilities..

 

Originally posted by @Bernard Sanga :

@Ari Hadar

I use the MLS too. I look at it almost everyday. But you're not gonna find ‘homerun' deals in the MLS. Not in my market atleast.

 So why are you looking at it? 

@Ari Hadar

Because I am not always looking for homerun deals. Swinging for the fences, like what I mentioned in my

Previous post is more risk. I am not the one looking for 0 down deals if you’re following. You can direct message me if you have more questions.