All Forum Posts by: Brandon Clark

Hey BP,

I initially wanted to start out flipping but now I really would like to take advantage of the brrr technique. My two issues were the down payment for a 80/20 commercial loan and also being able to move on to the next deal sooner than later. So instead of saying "I can't", I've decided to say "how can I". So below is what I would like to do in detail.

I would like to be all in after purchase/rehab for 80k or less. Which will create a maximum down payment of 18k(20%) plus other expenses.

I have about 20k available in LOC and Credit cards. (I may also be able to pull a HELOC on my primary home)

I will rent the property between $1200-1400, I will immediately get a LOC on the rental property to pay off my personal LOC and Credit cards. (The ARV is 130k-140k. So should be able to get 80% LTV at around 24k) I will make sure that my cash flow will cover all LOC expenses.

I will get more specifics on the terms of the LOC on the rental property soon.

At this point my Personal credit is free and now I can move on to the 2nd rental property and repeat the process. After 12mo I can do a cash out refi to pay off the LOC on the first rental property.

In my head this strategy seems like it could work for me and get me in the game. If you guys think that I am missing something please let me know. 

Thanks in advance 

-Brandon

Hey @Account Closed I'm in the same boat... Looking to network, build knowledge while also taking action in trying to close on my 1st deal. Seems like the New Orleans market is moving fast so you have to be very active to keep up.

@Wayne Brooks  yea that's what I was thinking. Seems like that would be an expensive fix.

Hey BP, 

I have a home that I'm excited about putting an offer in on. I was in it today and it seems to be an easy flip, and could be decent profit if I can get it for the right price. My only concern is, half of the  2 car garage is now a bedroom with a closet and it's not leveled with the rest of the house. Should I try to get this raised or can I leave it as is? The conversion turned the property to a 4/2 1400sqft home. It can sell in the 115-130k range. I've added pics below. Let me know what you think.

Thanks

-Brandon

Hey @Judah Alexander are you wholesaling the properties you have under contract or are you flipping them yourself? I'm currently looking for a new deal.

@Patrick Liska @Chris Mason

 yea I agree, I just didn't know if I should be concerned as an investor selling in the range that could possibly be affected. I've already heard about a handful of cases where people no longer can buy a home. 

Hey BP, 

Anybody heard of the new FHA student loan rule? As of 6-30-16 I believe, you and your spouses total student loan debt will be calculated differently. Instead of using the amount that you pay a month for your student loans they will use 1% of the total amount when determining your infome to debt ratio.

I feel like this will hender a lot of people from buying homes that use FHA loans. Which means and can also hurt investors that buy and sell in that range.

I think I explained that correctly. Anybody have any thoughts?

-Brandon

Hey BP, 

I just talked to my lender. He told me that I can buy a home, rehab it, rent it, convert into a permanent loan immediately and then move on to the next deal. I won't be able to pull the equity until 12 months. This is shocking because I always thought the brrrr technique meant I had to wait for seasoning before I could move on to the next deal but he's telling me I can move on to the next deal but can't pull the equity right a way. Is this normally how brrrr works?

Thanks in advance 

-Brandon 

Hey @Tim Harper.. Welcome to BP! I'm always looking for wholesalers in the New Orleans area.

Hey BP,

I was out looking at houses today and I ran into a possible deal. As I was looking around, one of the closet door hinges were broken off. It seem as if they may have been termites where the hinge was broken off. (I didn't see any other termite damage on the house).Should I still put in a offer and if accepted get a termite inspection and go from there or should I run from this property. I just don't want to miss out on a good deal.

Let me know what you guys think.

-Brandon