All Forum Posts by: Benjamin Papet

@Whitney Hutten Thank you for the clarification! I am in Denver, moved a few months ago from out of state. Do you have a preferred lender and reliable contractor you would recommend? 

@Mark Gauger, @Evan Polaski, @Kenneth Garrett Thank you for your insights/feedback! It brings a lot of clarity and makes a lot of sense!

@Jonathan Burmenko Doesn't one of the rules of cash out refinance state that we must first pay off the initial loan? Then we can use the leftover cash as we wish (i.e Repeat the process)? I'm new to this so there's a lot that I don't know. Thanks for the feedback!

Hello BP, 

I'm new to real estate investing and was hoping to get some clarification on the BRRRR method, specifically the Refinance part. I'm assuming we are talking about a cash out refinance correct? What is the most efficient way to do that?

For the sake of me understanding it here's a hypothetical BRRRR (please correct or comment if any of this is wrong or inefficient):

I buy a property for $100k, I put 20% down and apply for an $80k loan. 

I put $30k into rehab (I now have $50K invested in the property)

I order an appraisal after rehab is complete and it comes back at $150k

I rent the property and then refinance it at a 75% LTV ratio, which equals to $112.5k ($150k x 75%)

I then repeat the process. 

If all of this is accurate what is the smartest thing to do with the refinance money: Pay off the loan and own the property free and clear and use the money left to buy another property OR use the whole $112.5k to buy a bigger property (i.e duplex, triplex...)

Thank you for any comment, feedback you may have!

Great! Thanks for the feedback!

Hi BP community !

I will be buying a primary home in the next few months and contacted two lenders: the first one is my bank (Bank of America) which offers a 3.6% rate on a conventional 30 year-fixed mortgage. The second one is a local lender which offers a 4% rate on the same terms. 

I hear local lenders are more customer service-oriented and all around better, however, is it worth paying more and consequently spending way more over the course of the loan or should I go with the cheapest rate?

Thanks for any feedback you may have !

@Monica Breckenridge, is that a good thing or a bad thing?

Great information, thank you!

Hello BP family, 

I am planning on moving to Denver by the end of the year. I am not really familiar with that market: is investing in a primary SFR a smart idea and if so what neighborhoods/suburbs would you recommend?

How about rental property investing? 

Thank you for any feedback you may have. 

Very useful information, thank you !