All Forum Posts by: Bill E.

Also this is in Pittsburgh

Hello BP, I have a couple questions regarding construction loans. First off,I am looking to implement the brrrr strategy to grow my portfolio. Are construction loans the same as hard money loans? Are construction loans a good financing option for the brrrr strategy? Here are the terms for the loan that I was quoted, 90% loan to cost for purchase and rehab, 13 month term with 12% interest only payments and 3 to 4 points. My goal would be to refinance into a 30 year mortgage after the 6 month seasoning period. Are these typical terms? Should I keep shopping around?

@Nolan M. That sounds like a very good way to approach this, how would you structure your offer?

I have a question for those of you using the brrrr method. When replacing a kitchen and or bathroom in your property, do you use low, mid, or high grade materials? Does this effect the refi appraisal? Also does anyone have a rough estimate they use to determine cost of kitchen and bath replacements? Any help would be greatly appreciated!

Came across this article and wanted to see what investors in Pittsburgh think of this and how you could see it affecting the region. http://r20.rs6.net/tn.jsp?f=001rgKxmhLA2ONdrbDnHw2eRZB1P_eL82b-7D_U1YGlMtPWtclAmsuYHHhu4uoc5fQTP-vYlc6ZjOSpyaa3w5d9qhx-_M5xkLd3_TOUAD09os8Uc1r0bVCBBfd9EmMqnGLxrrB6gfs6Ie4B1IHqyjuL4qiZaMpyNNDOBUntyDCJI69IJO7DyXb9BpZxDJIvD_VDu_BSuu8Er-xGsUkRhQAIC0s6fdNgXM4e_N7l_aSLst8Y3O_TS7zJ_wU6uSJxQCONSbGCqEoSkYwivaD-oqtcKpDoYfAZHscBWRgmoCNfxHQVe3orYSFuafw8KLTasyQcCztO_TAw0kM=&c=C6rU5Ii6alZ7Qb7MLldjNeGP_auea3aOI8a0b1NWS1chQ0EsFSdsjQ==&ch=NhmtY7qz4NYylv2SKz4ksh601S4z0q2Gg5fZomN1fvlK9yxdt6-1LQ==

@Jonny Morris You are already in business right now. How are your numbers? Are you creating systems for your business? These are the things that build a great business. This is what you need to focus on. Anyone can create an LLC and have a "business", but that doesn't mean it's profitable or being run efficiently. You are on the right track, don't stress yourself over the whole starting a business thing, you have already started your business.

@Michael Beeman Amazing story! How do you value the arv of the properties you buy and how do you estimate the amount of money to repair? Also to what extent are you rehabbing these properties?

@Taye N. Are you planning on using FHA 203k? The only reason I ask is because with a normal FHA loan, you can't really buy a "distressed" property. It has to pass the FHA inspection, which wouldn't allow you to buy and occupy the property if it needs major work.

@Miguel Nava I'd also like to hear some recommendations for these smaller properties. Also where did you find this property? Can I ask how much you're buying for?

@James Kenney Hey James, welcome to the forums. I too own a duplex and am looking to get into wholesaling and acquiring more rentals. Message me if you want to talk about locations/strategy.