All Forum Posts by: CJ M.

@Mary Baccellieri

Hi Mary, I think most people try and use their own funds for the Buy and Rehab part of the BRRRR strategy. If you use a HML/private money it's typically temporary to cover the Buy and Rehab part. Also, if you're just starting out, they're probably going to be very skeptical of you since you don't have a track record which puts their money at risk.

Anyway, here is a recent example of something I did. I had a HML cover $64K for purchase at 12% and 2 points. It was a 120 day loan. They would have loaned up to 75% of arv ($85K) to help with the rehab, but I didn't take it. Anyway, I used my own funds for the rehab, then took if to a portfolio lender and refinanced it at 75% LTV for 5.25% for 20 years (5 yr arm). At close, the lender paid back the HML and I received the balance.

@Ben Layman

For starters, where are you located? $1700 in rent on a $312,000 property is not great. You could probably grow quicker (with more cash in your pocket) if you just sold that sucker!

@Sharad Peterson

If the property is not in the name of the LLC, you do not want to commingle funds. In other words, keep that rent in a seperate account.

@Wesley Acevedo

I've taken on a couple dozen loans in the past 2 years. Some lenders report them to credit bureaus and some do not. That said, prior to getting into REI my credit was 800-810. Now I have 10 that show up on my credit report and my score is still 760-770.

@Ralph Miller

Seems steep. For contrast, I pay $1.90/sf for glue down vinyl (looks like wood)...and an extra $1.50/sf if a sub floor is needed.

@Marita Jojo

For me, if the look and feel of the house is more modern and/or updated, I replace. The thing with new doors though is usually the labor to trim, install, mortise is much more than the door costs lol

@Ryan Spearman

Read or listen to Robert Kiyosaki's book "Fake." He talks about gold throughout most of it. Might give you additional perspective.

@Wendy Smith

Here are 2 questions I'd ask.

1. How much more $ out of pocket would another 5% be? (I.e. to go to 20%)

2. At 20% down, you'll have more cash flow. How long will it take for that "additional" cash flow to equal the that 5% extra you put down?

If the answer is many years, then the 3rd question would be, could you make better use of that money now if you kept it in your pocket and used it to grow. Food for thought.

@Cameron Riley

Depends. For example, in my county if the property is in a LLC, I need an attorney for the eviction. If it's in my personal name I do not need an attorney.

@Reed Lambier

I don't know what I dislike more these days, HOA's or the media. You are at their mercy, and their rules can change. I'll give you an example, I live in a condo personally, and after my 1st year they raised my fee by $50 per month, gave me a $6 000 special assessment for a new roof/siding that needed repaid over 3 years, and they just now stopped allowing anyone from renting their units.