Second BRRRR, Kansas City, MO

35 Replies

@Johny Omaga the house looks awesome and good luck on finishing the deal!

We invest in Northwest MO and I’m curious about how you do your hard financing with 1.5% simple interest? I’ve got a couple places I’m interested in but am looking at different ways to finance than traditional. You can DM me or reply here. Thanks!

A co-worker of my partners gave us a loan through a promissory note. (We both work at huge hospitals, turns out everyone who works at the hospital has money they have no idea what to do with). 1.75% is about $1,050 a month in interest only. Turns out being about 21% annually. So it is in our best interest to pay it back as soon as possible

Originally posted by @Bryce Bunton :

@Johny Omaga the house looks awesome and good luck on finishing the deal!

We invest in Northwest MO and I’m curious about how you do your hard financing with 1.5% simple interest? I’ve got a couple places I’m interested in but am looking at different ways to finance than traditional. You can DM me or reply here. Thanks!

 

This was our first foreclosure. We did almost zero due diligence (not a good idea) but it still worked out since our rehab costs were fixed with our contractor. We probably wont be doing anything like this again unless the discount is substantial. However we always make sure to keep our rehab costs as low as possible to factor in anything that may come up later. 

Originally posted by @Luke Meeker :

@Johny Omaga

What due diligence process are you working through for buying, what I assume to be, sight unseen foreclosures?

 

Updated 2 months ago

I shouldn't say zero.. We sent our contractor to the home before the end of the auction who was able to look on the outside. Then after the bank told us that it was tagged as a dangerous building they allowed us in, to make a final decision of the purchase. We then asked for an additional discount. We originally won the home for 80k.

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