All Forum Posts by: Aaron Cullen

Mary Ann Casey where was this property exactly? And who was your manager?

Jay Thomas I do BRRRR by buying properties in my own name and I obtain the hard money loan with the property in my name. So you are correct in that assessment, conventional loans are cheaper as far as interest goes. It also has more hoops, like waiting 6mo for seasoning and you personally qualifying for the loan.

@Kirsten Braddock Your plan sounds very risky. I would definitely want/need 6mo capex reserve for every property especially if you are getting conventional financing. That's just one of the issues I see you will run up against with this plan. @Ron Flatt is spot on with great advice. Take it one at a time and revise your goal as you go. Once you have a few conventional loans under your belt you will know exactly how your DTI is panning out and what the banks are looking for as you get multiple loans. Why 12 in 1yr? why not 2 or 3yrs?

Nicely done! Love the master bath

Not enough details on the deals to give a real answer but assuming they are both good deals why not do both? If I had to pick one I would choose the BRRRR, that’s my favorite method if the numbers work you can’t beat it. At the end of the day you have a “free” property that pays you every month and someone else is paying down the mortgage! The turnkey sounds very thin, 250$ mo cash flow for 70k+ of cash tied up indefinitely??

@Joe Villeneuve Hahaha I should have known. Sage advice always ends with the repeating of Rule 1 !!!

@Joe Villeneuve you never stated the 2nd Golden Rule...

Really nice, looks like great quality work !

@Travis Good definitely look into BRRRR, like Brent said it's just flipping to your self. I've done it many times and plan to keep doing it. No need to buy turnkey when you can do it yourself.

In my experience with BRRRR, (I️ have successfully completed 5BRRRs), I️ have learned a few important things to look for when looking for a bank to Refi. 1. I️ obtain the hard money loan in my personal name. I️ know people say you can’t do it but you can, just keep looking. The first money lender I️ approached allows it, I️ didn’t even realize it was hard to do. So I️ would say keep looking if you want a conventional loan in your name. 2. Conventional loan: for the Refi, find a bank that has 6mo only seasoning period not 12. They will count rental income with no seasoning period. At the beginning it doesn’t matter but as stated above the more loans you get it will affect your DTI ratio. So as you get more loans you need to find a bank that has no seasoning period for your rental income. If you get good deals then your DTI will actually go down because on paper you are making MORE money now that you have rentals. That’s why for me this is key to find a bank that allows that income with no seasoning. 3. It is not easy going this conventional route but it does work and can be worth it. The alternative is to go commercial loans and that might be the better option for you as you stated you have a partner. Plus from what I️ hear the process is much much easier. The reason I️ haven’t gone commercial yet is because of the more expensive debt and the shorter terms. If you can make the numbers work it might be a better option.