All Forum Posts by: Daniel Ahn

Hi, @Andrew Postell can you educate me on the importance of asking these questions?

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)

• - I'm assuming that since my rental income adds to my current income it will allow me to get better rates and a larger loan.

2. When do you start using “After Repair Value” on my property?

1. - Is this in reference to the seasoning period? Like some lenders will use the arv after 6 months?

3. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)

1. - Would hard money be an example of the short term loan?
2. - Is this also referring to the seasoning period?

4. What is my minimum down payment required? (if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)

• - When I refi 85% I am leaving 15% down right?

5. How many loans can I have with you?

6. Can I change title to my LLC?

• - If I chose a lender that didn't let me change my title to an llc, am I able to switch to a different lender down the road?

7. Do you sell your mortgages?

• - I'm completely lost on the importance of this question

8. What is your loan minimum?

9. Can you explain to me what your reserve requirements are?

• - I'm assuming that some lenders will require me to have a certain amount in reserves. Is that just so they can make sure I will make the payments?

@Andrew Postell

@Andrew Postell Hi Andrew. I plan on sending some questions over to a few HML. Do you have any questions you would recommend that I ask them? 

For the downpayment with the hml does that typically include the rehab cost if you are including that in the loan?

@Andrew Postell Thank you so much for your insight not only to this post but also to my previous one. 

I have several next steps I will need to take, including talking to a lender. 

I plan on asking if she:

• Refinances via ltv or ltc. 
• How long the seasoning period is.
• If she does ltv, at what % can I pull out. 

Do you have any recommendations as to what other questions I should ask or are those a good starting point?

Hi, I finished my first run of the brrrr book and I could use some clarity on some parts of the strategy.

1. What does the refinance portion look like of the brrrr strategy?

1. Do you now need a down payment because you are now taking a loan out against your property? Or is the fact that you are leaving 25% in the property (assuming ltv is 75%) like a "down payment"

2. When you refinance a loan, will it typically be refinanced as a "conventional loan"? Or is pulling out the equity from your property and paying down the mortgage a different type of loan? 

3. I'm currently living in an apartment what my wife (in California). Does the brrrr strategy work if I live in my first brrrr property and then refinance/repeat and rent out my second brrrr property?

4. I'm also considering long-distance investing just because the cost of Cali (and the county I live in) is high. I know there are pros and cons to long-distance and a lot of it has to do with risk tolerance/research. I'm wondering if long-distance investing is a better option for someone in my position. I would love any insights and opinions on this matter. 

Thanks for reading this possibly confusing post. I'm just trying to learn and grow!

Hi, can anyone give me clarity? When buying a brrrr property, you want to buy a property as low as you can that will give you a high ARV. That typically means that you want to look for properties that most banks won't loan on because of the condition of the property. That is where hard money, private lenders, cash, etc comes into place.

• Here is where I am confused. Does this mean that when buying a property, you need to buy the property for its full value? 

IE: A house cost 200k, you would use hard money, private lender, etc to get to get the 200k. Then rehab, rent & refinance it for ideally enough to all of your 200k + rehab cost back?

Does down payments not exist in the BRRRR strategy?