All Forum Posts by: Dan Shelhamer

@Tyler Jahnke thanks!  Good luck to you on your 1st one, it is an awesome experience and you will learn A LOT regardless of how it turns out.  Always expect the rehab to go over budget, and take longer than expected and you will de great!

@Miguel Castillo thanks!

@Dante M. thank you, I partnered up with my dad on this.  When you find a great deal it is not hard to find partners.  My parents actually came to me, and asked if they could start partnering up when they saw the returns I was getting.

@Jupshy Jasmin keep learning and pushing and new opportunities will find you!

@Septimus Oglivie I have been working with a mortgage broker (@Zack Karp) on all of my deals thus far, he has been great, and found me on Bigger Pockets before I even got my 1st rental property.  I have now done several loans with his company and would highly recommend him.  I am sure once I exceed my personal loan limit (which I believe is 10), I will need to start pursuing private money and more local banks to get portfolio lending.

@Peter Padalino  I used my realtor,@Robert Brannigan, to find this deal on the MLS. He is a top notch realtor, and also invests himself, so he knows what investors are looking for. There are definitely deals out there on the MLS, as I have found all of mine that way so far. However, now as I am getting into BRRRR as a strategy I would love to start connecting with some wholesalers to see if I can get even better value-add deals. My dad & I are partners on this deal and we used our own money on this deal.

@Jack Ni they do look at your debt to income ratio as you will now be taking on more debt.However, since it is a rental property, I believe they take 75% of the rental amount into consideration (accounting for expenses) (@Zack Karp would know more on this topic), and if that amount is greater than the PITI, than I believe it should not hurt you but actually help your debt to income ratio.

@Ruth Yemane I am glad I could help! Southern California is a very expensive market. I would recommend finding local REIA's to attend, and networking with people who are doing this already in your market.

@Tyler James we found this deal on the MLS using my realtor, Rob Brannigan.

@Scott Trench congratulations!  It's an awesome book, very easy to read, and changes lives!  Everyone wants to be a real estate investor, but getting your finances right is step #1.  Keep it up!

Thanks everybody!

@Ola Dantis thanks so much for the kind words!  Their truly is no other community like BP, and I just want to give back anything that I have learned along the way.  

Another thing that I think isn't discussed enough, on top of the financial return of this, their is a very satisfying feeling of taking a home that was in dire shape and turning it into a place that people would love to live in.  

In my opinion, nothing compares to Real Estate investing.  You can change your life, but also make a huge difference in other lives along the way!

@Joe Mende thanks, I bought this one in Round Lake Beach. 

@Mike McCarthy I completely agree.  

@Stephen Haynes would you treat an eviction and foreclosure the exact same?

@Thomas S. I do agree that an eviction is more of a character issue than anything.  This is all hypothetical, however, let's say prior to them being on Section 8, they were evicted for being unable to pay a $1300 rent.  But now being on Section 8, their portion they will be responsible for is $100.  They are still the same person, but financially the situation is completely different.

@Garrett Quathamer exactly.  Whatever the property appraises for, they will write us a check for up to 75% of that, and that becomes the mortgage.  Glad to help!

@Mitchell Litam you can certainly do hard lending for a BRRRR, just be aware that you're going to have 6 months of holding costs before you refinance into a conventional loan. We bought this one in cash. Once we refinance, I want to put that money right back to work in another property.

@Kevin Brown it had been on the market starting in May 2017 for $75,900, and had a pending sale which fell through.  It then came back on the market at $63,000 in November, and we closed it on January 25th, 2018.  It needed a lot of work.  The previous owner lived in it for a very long time, and didn't do any updates.  All of the floor needed to be leveled as well.  It was pretty much a full gut on the interior.  Luckily the roof and siding is fairly new.