All Forum Posts by: Brandon Baker

 I heard someone else call it delayed financing, but my lender just says it's a way around the seasoning period. Again, nothing illegal, just creative. PM me if you want lender info, I'll make the connection. 

Fyi, I used a traditional mortgage and closed before 6 months. It's actually within the guidelines, the problem is most traditional lenders don't understand it. So, it works like this: you have a house that will ARV for 100K, you purchase for 50K, and plan to rehab at 25K. When you show up to close, you have to bring the purchase price 50K, plus rehab budget of 25K, which is 75K total to closing. The 25k goes into repair escrow. This allows you to cheat the 6 month seasoning period.

That rate seems right for a DSCR, but if this is only your second property, why are you not using a traditional mortgage and saving a point?

Can’t stress understanding zoning laws enough…I tried this and found out it was a requirement to have a firewall, and each unit has to have two exterior doors. So, If I would have done this illegally, and the house caught on fire which resulted in someone being hurt or killed, it would have been my fault. This is not an area to cut corners….know your local laws. 

Kim, I focus on BRRRRs as well. 

The entire point of a BRRRR is to pull all of your money, if possible, out of the deal to leverage it for the next opportunity.

Here’s an example:

1. I pay 65K cash for a property (Buy), put 40K cash into rehab (rehab), the property is now worth 145K so I get a loan (refinance) for 105K which refunds all my cash investment. I now move on to the next property (repeat). 

2. If you are using a loan to purchase the property, it is still doable but more difficult. You just have to account for the loan expenses to make sure the deal works. 

 @Kerry Noble Jr, that's what I'm looking for..just wasn't sure who to use for what, and how to compensate them. 

@Caleb Reits, I hear you loud and clear..I'm a systems and process guy so I like building a workflow before I ever start pulling the trigger. I've done the same with my BRRRRs and it's working there...

@Andrew Postell, good call, didn't think of that.....we should meet up sometime! 

@Drew Sygit, thanks for the info! 

@Brian Cerezo, I've done 9 BRRRRs including two down to the studs in the 18 months. I'm happy to chat 1 on 1 if you'd like. 

I'm spinning up a wholesaling business to drive better opportunities for my BRRRRs, but everything I do is remote. So my question is, who do you use to do your property walk throughs, take pics, etc? Also, is that person different than your acquisition manager? What are you paying these people? Any suggestions/responses are greatly appreciated. 

Hello Everyone, 

Quick question on leveraging VAs, anyone using them? I focus on BRRRRs, but also do my own property management so I"m thinking about setting up a system where the VAs take a call, then distribute to the tradesperson if necessary. Anyone else doing something like this? Are you using a VA for something different?