Investor · New York City, NY · Member since 2019 · 82 posts · 43 votes
Hello Bigger Pockets!
I will make this short and sweet - I'm a new investor out of New York looking to BRRRR in the Magic City, Birmingham, Alabama. In terms of my price range I'm not looking to go more than $75k all in on the purchase and rehab. I've recently learned about the BRRRR strategy and am excited to implement it.
Is there anyone out there who has successfully BRRRR'd in Bham? What has your experience been, what type of financing did you use, what neighborhoods are good to target, etc..?
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Chris John I imagine your standard risks of dealing with a wholesaler apply.
1. Are they a realtor? Most aren't, so they are not beholden to the same fiduciary standards.
2. Keep all of your contingencies if you can. Make sure you can inspect.
3. Many wholesalers want cash closes. If this is the case, see if you can use HML or PML to maintain your velocity of money and close like cash. Also, until you are really familiar with an area, I would get an appraisal even it comes out of pocket.
4. Check into how they are closing. Are they double-closing or will they take possession and then close with you. I'd look to make sure the first closing went smooth and that the title will transfer to you free and and clear.
These are just a few tips... just make sure you are advocating for yourself!
Austin, TX · Member since 2018 · 164 posts · 107 votes
6y
Hey Pope! Have you purchased a property yet? I just closed on 2 properties (Pleasant Grove & Grayson Valley) that I will be rehabbing soon and putting up for rent. I will make sure and let you know how those go. How is your search coming along?
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Chris John I imagine your standard risks of dealing with a wholesaler apply.
1. Are they a realtor? Most aren't, so they are not beholden to the same fiduciary standards.
2. Keep all of your contingencies if you can. Make sure you can inspect.
3. Many wholesalers want cash closes. If this is the case, see if you can use HML or PML to maintain your velocity of money and close like cash. Also, until you are really familiar with an area, I would get an appraisal even it comes out of pocket.
4. Check into how they are closing. Are they double-closing or will they take possession and then close with you. I'd look to make sure the first closing went smooth and that the title will transfer to you free and and clear.
These are just a few tips... just make sure you are advocating for yourself!
Austin, TX · Member since 2018 · 164 posts · 107 votes
6y
@Chris John initially I was a little worried but I was much more comfortable after the first purchase. Also, if you find a property manager that can stop by and take a quick look at the properties, that helps a ton. I bought my second one site unseen after I got someone to check it out for me and had the contractor visit too to writeup an estimate on rehab costs.
Awesome. Seems doable, but scary. I'll have to get my loan situation squared away and reach out to the property manager I was talking to to see what if that's a service he provides. If not, looks like I'll keep shopping.
Austin, TX · Member since 2018 · 164 posts · 107 votes
6y
Nice, congrats! Any idea on who you are going to use to refi? Im having some trouble finding a bank that will give a decent rate AND let me refi before 6 months.
Investor · New York City, NY · Member since 2019 · 82 posts · 43 votes
6y
@David Chappel - I'm using a broker, her name is Sorita Pollnitz. But it will be refinanced in my personal name. Another person is Guy Hunt at Noble Bank in Birmingham. Last I checked they were tepid because of COVID, but they may have changed their stance. DM me if you're interested and I can give you their contact details.
Investor · Birmingham, AL · Member since 2016 · 15 posts · 17 votes
6y
Hey Pope & David. I'm an investor in Birmingham along with being an appraiser for the last 29 years. I mainly do fix and flips for myself but I know the Birmingham market pretty well. If you ever have questions, feel free to reach out to me. Another property manager I know of is GK Houses. If you wanted another person to talk to. I don't know Mark personally but have heard good things about him also.
Austin, TX · Member since 2018 · 164 posts · 107 votes
6y
@Bruce Glenn hi Bruce, I sent you a private message early last night. I am about to be in the refinance stages of my process and I would like to get some tips on how to get the highest appraisal possible. Any tips you could give me would be greatly appreciated, thanks!