1st Deal in Chicago using BRRR Strategy

1st Deal in Chicago using BRRR Strategy

Flipper · Elmhurst, IL · Member since 2011 · 96 posts · 23 votes

I just closed my 1st BRRR deal two weeks ago and started planning for rehab work. It's 3br/1.5ba SFR in the south side of Chicago.

Bought the property from a wholesaler and I should have at least $20k of equity after rehab and refinance. I used a private loan from my entity (LLC) for the initial purchase and rehab. This loan will be paid off at refinance and I will have no money left in this deal.

Property is solid C area and can rented for about $1200/month, project cash flow after refi is about $200.

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Flipper/Rehabber · Chicago, IL · Member since 2017 · 79 posts · 23 votes
9y

@KC Zhang Would love to connect. My partner and I run a flipping/wholesaling business in Chicago. 

Congrats on your deal!

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  • Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
    9y

    congratulations 

    @KC Zhang

    See you in DG later today! 

  • Chicago, IL · Member since 2016 · 36 posts · 10 votes
    9y
    Nice! Can you give me more info about the private money loan?
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @KC Zhang:

    Congrats.

  • Real Estate Agent · Chicago, IL · Member since 2016 · 283 posts · 71 votes
    9y

    @KC Zhang congrats look forward to hearing about it!

  • Flipper · Elmhurst, IL · Member since 2011 · 96 posts · 23 votes
    9y
    Dominique Poindexter My LLC loan the initial purchase and rehab money to me, which is recorded as a mortgage note. After rehab, I will refinance with a mortgage broker at after repair value. PM me if you need details, I can point you to the mortgage broker. Thanks
  • Brooklyn, NY · Member since 2016 · 39 posts · 19 votes
    9y

    @KC Zhang Were you able to find any banks to refinance with? I'm searching for banks in Chicago who will work with me without a seasoning period. Any recommendations would be greatly appreciated. Thanks!

  • Flipper/Rehabber · Chicago, IL · Member since 2017 · 79 posts · 23 votes
    9y

    @KC Zhang Would love to connect. My partner and I run a flipping/wholesaling business in Chicago. 

    Congrats on your deal!

  • Los Angeles, CA · Member since 2017 · 21 posts · 2 votes
    9y
    Great job @KC Zhang! Really excited about your first brrrr deal! I am going to be in Chicago upcoming weekend, would you be interesting in meeting up for a coffee? Best, Sergii K
  • Flipper · Elmhurst, IL · Member since 2011 · 96 posts · 23 votes
    9y

    @Sergii  I'd love to meet and talk about real estate. I'll PM you with my contact info. 

    @Maria Looking forward to work with you. 

  • Flipper · Elmhurst, IL · Member since 2011 · 96 posts · 23 votes
    9y

    @Keisha F.  

    I'm working with a mortgage broker on the refinance. The house is still under rehab and we will do appraisal after that. I'll keep you posted on the refinance. Let me know if you need the mortgage broker info.  

  • RI · Member since 2018 · 48 posts · 13 votes
    7y
    Originally posted by @KC Zhang:

    I just closed my 1st BRRR deal two weeks ago and started planning for rehab work. It's 3br/1.5ba SFR in the south side of Chicago.

    Bought the property from a wholesaler and I should have at least $20k of equity after rehab and refinance. I used a private loan from my entity (LLC) for the initial purchase and rehab. This loan will be paid off at refinance and I will have no money left in this deal.

    Property is solid C area and can rented for about $1200/month, project cash flow after refi is about $200.

  • RI · Member since 2018 · 48 posts · 13 votes
    7y

    I’m about to embark on something similar. How much repairs and capex did you account for after your rehab?

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