All Forum Posts by: Arron Paulino

 Thank you for the reply! How do I proceed with having the seller do the credit check and review of my finances (Total noob question lol)? I saw the property on Zillow after the fact. He does include his wholesale fee into the down payment, but you're right I could just be direct with the seller. I also saw it as an opportunity to build a relationship with a local wholesaler for future deals.

Is pre-approval necessary when doing seller financing? I ask because I recently came upon a deal and the wholesaler is asking if I have been pre-approved. Seller financing is available in the deal rather than paying all cash for the property. I thought pre-approval is only if the property would be bought using leverage. Any advice on this topic and how to proceed is greatly appreciated!

 I'll lay it all out there and show them what I've been doing. I appreciate your time!

Thanks for the reply! I think I'll be in a similar line of work, but not in the same industry. I plan to either stay at my current job until the end of this year or the end of next. Once I figure out another job I am more interested in, I plan to make the jump. I am interested in real estate and would like to learn skills that could help with building my rental portfolio so this is a line of work I'm looking for at the moment.

The common program I've seen is 2 years of W2 income, but it is interested to see there are some that do one year. I do not plan to work part time at the moment as I scale up my portfolio, but will do so once I notice I can rely on my rental income instead of my earned income. I just do not want to mess up any thing pertaining to being unable to obtain conventional financing because I left my job all of a sudden. I will continue to work and am just in a time in my life where a new start in a new job is in order.

According to my numbers, I had the ARV set at $100k, so I bought it for $43k and rehab will run me another $42.5k. I anticipate leaving money in the deal of about $10-15k due to my current lender providing a cashout refinance of 75% of ARV. I do want to make the private lender comfortable with doing this deal with me so I can use them for future deals. How do you suggest I come up to a lender to have them see this all play out?

I am planning on cashout refinancing my fourth property using conventional financing (30-year, fixed rate) since I just finished rehabbing that one and plan on having it rented out. From there, the plan is to use those funds to rehab the fifth property if I am unable to find a lender to fund this rehab. The seasoning period for my current lender of my rental portfolio is six months, so in about three months I should be good to go. What do you think?

I am thinking about transitioning jobs/careers and am wondering how this affects my ability to get loans if anything. All that I am aware of is that if I do so, I must not do so in the middle of getting financing. I'm trying to wrap my head around the need for 2 years of W2 income for financing. Does that mean I would need to stay working for two years or am I able to switch jobs but still somehow fulfill the requirement? I essentially want to have a W2 job more as a hobby and rely on my rental income to reach financially freedom. I know it is easier as well to get conventional financing by continuing to work, which I do not mind. Any advice is appreciated!

I am currently in the process of doing my fifth BRRRR and have met an obstacle. I was able to save up enough to do this on my own and do the BRRRR process for my first few rental properties. I was able to buy the property cash, but have run out of liquid capital to fund the rehab. My options are to wait until I am able to refinance my fourth property in order to have the funds to do the rehab for property five (which won't be until early next year, has anyone done this option before?) or find a private lender to fund the rehab of this project. I have used hard money lending on one of my properties, but prefer not to because of the upfront fees that are needed. I am more comfortable paying interest only monthly or a lump sum at the end. My question is: How do I structure an offer to a private lender (friend and/or family) so that they are comfortable and I can ease them into funding my rehab? I definitely want a win-win situation so that it can turn into a future tool I can utilize after the lender is paid out. Any advice is welcome and much appreciated!

Note: I have done a couple private lending partnerships before diving into building my rental portfolio just to get my feet wet so I know how a promissory note works. Ideally, this is what I'd like to do and I'd essentially be the borrower this time around.

Hello Biggerpockets,

I currently have done 4 BRRRR's and am having fun doing it on my real estate investing journey! My first and second ones went well and I did have to keep some funds left in the deal when I cashed out during my refinance, but made it seem like a down payment in my mind. This is good, however, I can only do this so many times as I know I will run out of liquid capital to continue funding future BRRRR's to build my real estate portfolio. My third rental property was bought during COVID and my insurance provider dinged me for needing to change my asbestos siding which cost me double what I had planned for the rehab bid. This essentially deterred my ability to scale my portfolio. My fourth property seemed like a reach since I may have overpaid for it during the purchase price, but had a normal rehab budget. In all, I use these experiences as learning lessons for me going forward.

Currently, I have enough funds to purchase another property, but am short on the rehab budget or vice versa. I will not be able to cashout refinance my fourth property until early next year. With how my BRRRR's have gone on the previous properties, I am not sure if a hard money loan makes much sense since I've been leaving cash in the deal after refinancing. Maybe I need to use OPM to fund my deals going forward. I am seeking advice in terms of scaling going forward for my future deals. Purchase prices for properties have been going up for what I'm looking for. Any advice will be greatly appreciated!

 Yes, this is the standard 30-year fixed rate for this loan. I do want to maximize the cashflow for this property long-term and am leaning with the first option. I understand what you are saying and appreciate your response!