BRRRR in Southern CA & Lendor Recommendations

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Upen PatelPro Member
Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
4y

@Victoria Velazquez Would love to connect and understand your short term/long term plans. No two investors are the same and I take the time to understand your plans, and help plan financing solutions accordingly. I am more then just a lender, I am your personal mortgage consultant. I specialize in investors.

Lets speak.

[email protected]571-200-6180
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  • Andrew Garcia
    Lender · Charlotte, NC · Member since 2022 · 739 posts · 410 votes
    4y

    Hi @Victoria Velazquez, I would be happy to refer a lender that can help you with the purchase & rehab front-end loan as well as the back-end refinance.

    Let's connect!

    0Reply
  • Keely McBrayer
    Lender · Member since 2022 · 15 posts · 21 votes
    4y

    Hi Victoria, 

    I work for a private mortgage lender that has an office in California as well as Texas. Would love to connect to discuss how to get this started for you!

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4y

    Hey @Victoria Velazquez would love to take a look at your situation. I am located in Los Angeles. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Matt Cartwright
    Lender · Newport Beach, CA · Member since 2016 · 68 posts · 18 votes
    4y

    Hi @Victoria Velazquez I work for a private mortgage lender that has an office in Newport Beach CA. Would love to connect!

    0Reply
  • Isaac S.
    Member since 2018 · 563 posts · 562 votes
    4y

    If you have enough capital to deposit in their bank...First Republic Bank has the best rates, and focuses on serving high net worth people, especially RE community.

    0Reply
  • Jordan Murrell
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    4y
    Quote from @Victoria Velazquez:

    Has anyone successfully BRRRRd in Southern CA and do you have any good lender recommendations from the area?


     Hi Victoria,

    A lender named Ricky Montanez will be able to help you. He works at Castle & Cooke Mortgage. 

    I can message you his details!

    0Reply
  • Joe HomsBusiness Member
    Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
    4y

    @Victoria Velazquez Yes, but not right now. Maybe, if we have another major downturn in the market. The only places that we are BRRR in right now are Big Bear and Joshua Tree which we are turning into AirBnb models.

    Good Investing...

    [email protected]949-625-4533
    0Reply
  • Gina SternPro Member
    Investor · Boca Raton, FL · Member since 2019 · 1k+ posts · 159 votes
    4y

    I was an investor in SoCal and used Logix Bank, also had dealings with Farmers Insurance Credit Union. The Credit Unions are more for the little guy as opposed to the big banks. Good luck! I would avoid hard money lenders if possible .

    [email protected]561-430-2616
    0Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 649 votes
    4y

    If you want rehab money you have to use hard money.  I've never seen a credit union of primary bank lend an investor on a purchase and then just throw in rehab money too.

    To do the BRRRR strategy in Southern Cal would be very expensive. You'll be tying capital up with every deal, so the question is how many bullets do you have? Don't frown on doing the BRSR - Buy Rehab Sell Repeat.

    Two investors do their first deal and it costs them 25k between down payment and fees. Their ARV is 30k above as-is +rehab let's say. In three months they carried the debt while the work was being done and now it is, so you made 3k in payments let's say - so now you are in 28k. One investor wants to refinance and put this baby in the portfolio and the other wants to sell and take that 25k net profit and now have his 25k investment and 25k more. His account now says 50k, the other investor will refi and get maybe 8k out of it and have maybe 200/month pos cash flow coming in - but you can't do anymore deals while the other investor is on to flip two and when he/she is done they will have 75k in the bank the other guy will still have 8k and will have collected 600 in cashflow. Fast forward a year from now. The flipper did three more deals and now stepped it up. 300k as-is and better now cause you get 90% of any purchase and 100% rehab. You can float 40k for four months no problem, you'll have 120k by then. The holder is still there with his 12k let's say if he's a saver and he collected 2400 in cashflow over the year. Which investor would you wanna be?

    Right now sell, sell, sell. Especially if you are just starting. Get a couple flips under your belt. Gain experience, create some liquidity, and then any bank would take you serious and now you can even by a 4 unit building under a fix n flip 12 month loan, get 90% of the purchase and all the rehab money. If it costs 600k and you are putting 150k in - you'll be able to afford that after about 5-6 deals. That first investor will never, ever be able to afford that. Now after the work you refi based off the ARV which will be 950K and now you hold it and now you have four doors. That first guy still has one door and waiting until he has 28k again so he can just do a 100k as-is value property. The other guy now has 4 doors and he can still operate at that 300k as-is property level.

    This game takes money my young investors.  These deals, if you have zero experience, will cost you 25k - 30k.  Each time you do a deal that's what you'll have to float.  If you wanna do a Jesus move and turn one loaf into enough loaves to feed a crowd then don't tie up your one bullet.  Cash it out with a little extra and grow it like a snow ball rolling down the mountain.

    Most have to start in the minors, in the 100k - 130k as-is value properties. Even those deals are expensive when you just start because you have to lay out 20% of the purchase. You gotta pay your dues, but if you do you will be rewarded. The story of that second investor who sold to build liquidity then held when he could afford 4 unit buildings that could be any of us. Shoot, after working on the loan side of it for a while, don't think I ain't got dreams of doing some flipping of my own. I'm gonna open my real estate LLC and save up my first bullet just like any of you.

    0Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    4y

    @Victoria Velazquez Would love to connect and understand your short term/long term plans. No two investors are the same and I take the time to understand your plans, and help plan financing solutions accordingly. I am more then just a lender, I am your personal mortgage consultant. I specialize in investors.

    Lets speak.

    [email protected]571-200-6180
    1Reply
  • Jason Kudo
    Real Estate Agent · Pasadena, CA · Member since 2017 · 274 posts · 255 votes
    4y
    Quote from @Victoria Velazquez:

    Has anyone successfully BRRRRd in Southern CA and do you have any good lender recommendations from the area?

    Hi Victoria, I have clients who have successfully BRRRRd in Southern CA. Right now, it’s going to be tougher and you might need to look at renting short-term versus long-term in order to make the numbers work. Otherwise, you’re going to be looking at the more in-land communities where the acquisition prices are friendlier.
    0Reply
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