All Forum Posts by: Brandon Beatty

Hey Johnson! 100% financing does exist with smaller banks. I’ve bought many properties using 100% financing. Generally banks don’t advertise these rates and really only offer it after you have a very strong track record and large deposits with their bank. 

Investment Info:

Large multi-family (5+ units) commercial investment investment in Ingleside.

Purchase price: $1,050,000
Cash invested: $350,000

I added this deal to my profile for experience and decided to post about it. I bought this deal off market very distressed. It required repairs after a hurricane in South Texas.

What made you interested in investing in this type of deal?

I owned single family rentals and one apartment complex prior to this deal

How did you find this deal and how did you negotiate it?

Marketing directly to sellers. Seller wanted 1.5M and ended up settling for 1M.

How did you finance this deal?

I used a local bank

How did you add value to the deal?

At purchase rents were $700 per unit. I spent total over 500K on the renovation (took 2 years nearly). Rents are now $1400.

What was the outcome?

Over 1.5M in created equity

Lessons learned? Challenges?

I did not do enough due diligence. I ended up spending about 150K more than anticipated on renovation. I also gave 30 day notice to many tenants months leading to COVID leading to low occupancy for several months.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not specifically. I recommend meeting bankers, brokers, property managers in you market specifically on referrals from others already in the industry.

@David Bergmann thanks for the feedback! 

@Paul Sandhu thanks for feedback. How many Airbnbs do you have?

Hey Everyone,

I am looking for feedback from those who have scaled a short term rental business. 20+ Airbnbs. 
questions:

-what does your team look like?

-how often do you do a “market survey” to check other properties?

-how close do you try to keep your airbnbs to each other? (In a large MSA)

- How many years do you budget to keep the furniture for?

-what KPIs are you tracking?

-what systems and subscriptions do you use?

-if you pay a 3rd party company, how much?

I appreciate all and any feedback! 

@Zaid Bender It really depends on the deal! Flexibly that local banks can offer really help get deals done that need large rehabs in my experience

@Jesus Quintanilla Congrats! Looks great

@Adam Jason When using the BRRR method, there are many variables that can impact your ability to refinance and move on to the next property. Initially making sure your #'s are right - rental values, rehab amount, ect is important. Depending on what type of loan you get to pull your cash out - this loan will have variables as well. Some require seasoning periods and lots of changes can happen during this seasoning period in the RE market and lending. At the end of the day every BRRR deal will have challenges, but the end result is worth it!

@Kameron Yellin Sounds like an awesome deal!

@Michael Walstedt You have the right idea! The LTV can vary and there's other factors like debt service ratio or debt to income ratio depending on the loan you get