All Forum Posts by: Brian Watts

Put my second BRRR project under contract yesterday. It was a foreclosed home that needs little repair. I plan to use the HELOC on my primary residence and a margin line of credit from my stick portfolio again to work this deal. Forecasted numbers;

Acquisition: $70,500 - to be paid out of HELOC

Originally listed at $79,990 but because I brought a cash offer and able to close quickly the asset manager was able to lower the cost.

Rehab: $15,000 - to be paid out of stock line of credit

New floors, fresh paint, new oven/stove. Kicker is the AC's age - expect 5-8k for this item.

ARV: $110,000

Based on low end comps in the area.

Rent: $1,100

Based on local market rates.

I'll keep y'all posted on this one as it goes!

@Kris L. total rehab was ~10k

Hi Jazmin - rehab was light as the owner was still living in the house when the short sale started - All in I paid 10k.  

I worked with a lender who allowed 80% cashout and the property is listed for $1,100.  today we have had some interest and one application - however - it has only been listed for just over a week.  

Investment Info:

Single-family residence buy & hold investment in Shreveport.

Purchase price: $79,700

First BRRR attempt - great success! Leveraged two lines of credit with zero money out of pocket. Having a great team was the secret to success!

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

Low to no cash requirements!

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

Worked with a local Realtor who was aligned with what I was trying to do.

How did you finance this deal?

Lines of Credit then refinanced into a balance sheet loan

How did you add value to the deal?

new floors, clean up, paint, and saved a foreclosure.

What was the outcome?

final ARV of $118k, refinanced to replace lines of credit

Hey @Axel Norvell, I was fortunate enough to find my first 2 on the MLS but they weren't in Houston proper. My current deal is a short sale (also on the MLS). Starting next year I will be taking the wholesale route now that I have established funding with Corridor Funding.  They have good flexibility depending your goals.  Message me and I can send you the contact info.

BW

Get after it sir! I was in your shoes one year ago and finished this year with 3 duplexes under my belt and currently finishing my first single family.  So much fun! Property Taxes seem to kill most potential deals but if you live in them it could be a different story.  There seems to be better deals right now outside the beltway - but that doesn't mean they don't exist!  

Hello Shubho, there is a great wholesaler in your area who I work with from time to time. @Logan Gerard will help you find the deals!  

Say you have a small collection of properties which are under lease.  Is it possible to list the remaining expected lease payments minus expected monthly expenses on a Balance Sheet for the purposes of acquiring financing on a different deal?  

@Angie Shires Always looking for more! Love the Tyler area! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Longview.

Purchase price: $172,000
Cash invested: $34,400

Two duplexes in north west Longview, TX

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

Found the deal on the MLS from another out-of-state investor who needed cash to rebuild other investments

How did you finance this deal?

Conventional Mortgage from a small bank in Texas

What was the outcome?

Cash flowing deal while building equity on a 15yr note