FIRST BRRR Complete! Details + Pictures!

301 Replies

Hey @James Gates, just wanted to let you know how great it was for you to post this and answer so many questions.  I read all your posts in this thread and you covered everything in great detail.  Look forward to hearing about future deals and wish you much success. 

Originally posted by @Rick DiChristofaro :

Hey @James Gates, just wanted to let you know how great it was for you to post this and answer so many questions.  I read all your posts in this thread and you covered everything in great detail.  Look forward to hearing about future deals and wish you much success. 

 Thank you Rick! I appreciate the kind words. 

@James

@James Gates  I can't take the credit-- I work with a local company in Alabama that has it all set up for me. I bought a property on my own, in a D class area of Birmingham and paid cash for it and then through that process ended up working with this group that basically does it all for me, much easier and in better areas and I don't need my own capital. Dm me if you want an intro with them. 

@James Gates First off congratulations; second off after reading through the entire discussion, thank you for all your patience and assistance for us new-b's. I don't know if I would be able to answer the same question 10x over in one forum...a far better man then me.

I noticed you mentioned that you had used a BP calculator to evaluate your first deal....is this what you have used to analayze all your following deals, if not do you have another process in place to make sure you are investing in a good deal? I only ask because i notied you weren't a pro-member and was wondering if you had your own system? Also I was wondering if you wouldn't mind breaking down your deals for us? What the rent is, mortgage/insurance/utilities(if any) CAPex(i know you said 5%)? Sorry for the long post, just trying to learn how others are evaluating deals and what the numbers actually ended up looking like.......I appreciate your advice! Keep up the good work!

@James Gates wow ! Thank you for sharing! It’s crazy I have been reading and listening to so many information here in BP I don’t know anything about real estate! But my goal is to have at least 5 rentals by the end of the year .

So your suggestions is to began with a rental property instead of buying our own home first? I’m just asking because I am looking to buy my first home.

Thank youu and great success to you!!

James Gates, great job. I too am from Orange county and starting to invest in Tulsa Ok with a partner but the disadvantage I see when I put together numbers is the cash flow per house is very small, especially when having a partner. From your numbers I'm guesstimating your cash flow for this townhouse to be about $200 and then split that in two with a partner. Maybe I'm being too pessimist but it'll take a lot of houses to be able to be financially independent. What's your ultimate goal?

Originally posted by @Rick DiChristofaro :

Hey @James Gates, just wanted to let you know how great it was for you to post this and answer so many questions.  I read all your posts in this thread and you covered everything in great detail.  Look forward to hearing about future deals and wish you much success. 

 Hey Rick!

I appreciate the kind words, I am happy to give back, if no one had talked to me when I was "green" and knew nothing it would have been a much harder road.

-James

Originally posted by @Evan Rosenboom :

@James Gates First off congratulations; second off after reading through the entire discussion, thank you for all your patience and assistance for us new-b's. I don't know if I would be able to answer the same question 10x over in one forum...a far better man then me.

I noticed you mentioned that you had used a BP calculator to evaluate your first deal....is this what you have used to analayze all your following deals, if not do you have another process in place to make sure you are investing in a good deal? I only ask because i notied you weren't a pro-member and was wondering if you had your own system? Also I was wondering if you wouldn't mind breaking down your deals for us? What the rent is, mortgage/insurance/utilities(if any) CAPex(i know you said 5%)? Sorry for the long post, just trying to learn how others are evaluating deals and what the numbers actually ended up looking like.......I appreciate your advice! Keep up the good work!

Hey Evan, 

I did use the BP calculator to evaluate the first deal. I find the "BRRRR" calculator in particular helpful, there are a lot of real estate calculators are out there that will calculate cash flow, ROI, IRR, but they can not comprehend the power of the BRRRR strategy and an "infinite" (divide by zero) return. the BRRRR calculator visualizes this beautifully.

Until recently I was a PRO member, but being the frugal (cheap) person I am I had to give it up...hah. After a few deals I am much more comfortable running the numbers myself with a couple of different scenarios.

Originally posted by @Natali Guzman :

@James Gates wow ! Thank you for sharing! It’s crazy I have been reading and listening to so many information here in BP I don’t know anything about real estate! But my goal is to have at least 5 rentals by the end of the year .

So your suggestions is to began with a rental property instead of buying our own home first? I’m just asking because I am looking to buy my first home.

Thank youu and great success to you!!

 Hey Natali,

My wife and I purchased our own home first before pursuing rental properties. 

Good luck on your goal!

-James

@James Gates , Congrats on your first BRRRR! You are rolling right along Great start!

We are applying for a line of credit from a credit union we did a cash out refi, however we were already told we could not buy property with it, only repairs. The credit union you used allowed you to use the HELOC to purchase a house is this different from a line of credit? I've heard of people using both methods.

Thanks

Originally posted by @Henry R. :

@James Gates, Congrats on your first BRRRR! You are rolling right along Great start!

We are applying for a line of credit from a credit union we did a cash out refi, however we were already told we could not buy property with it, only repairs. The credit union you used allowed you to use the HELOC to purchase a house is this different from a line of credit? I've heard of people using both methods.

Thanks

There is no stipulations with our HELOC, it is our equity after all. We closed on our first property with HELOC funds.

Originally posted by @Nicolas Beaujean :

Wow, that's awesome! Did you ever use hard money for the other 5?

 Hey Nicolas,

We used a combination of partnering and raising private money for the other 5 units.

-James

@James Gates The power of Real Estate Investing! 🤑🤑🤑🤑🤑 

I LOVE IT

Fantastic story, James! Congrats to you and your wife to make this great discovery...

To your success and many others who would take a chance on themselves! 🤗

Wow James!

Your post is amazing and so inspiring.

I am always admire people who decide to take their destiny in their hands and start their journey to their financial independence.

I am currently on that journey myself.

I am investing in all aspects (done flip project, own few Duplex in Indy, investing in notes).

BRRR is something that interest me and I will be happy to connect with anyone who can help me start my first steps in doing that.

Eran


Congrats on your success! This may sound stupid but I'm new. How much profit do you get per month from this property if you don't mind sharing? How much from the other properties? I'm wondering how many you would need for example to have $5,000 a month. 

@James Gates

Thanks so much for sharing. I am in the Seattle area and just started learning about BRRRR, but the stories around Seattle is just discouraging, and yours is the complete opposite and really helps to motivate me! thanks!

I am in the process of getting HELOC myself. One thing I have not seen people talk about is how you pay the interest back after you start taking out funds from your HELOC before your refinance ? Do you take out more than you need to cover the monthly interest payment? Or do you have other fund to cover it?

Thanks again!

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