All Forum Posts by: David Olson

@Owen Dashner I was saying 70% to be conservative and for some reason I thought it was the norm for SFH. I'm not to familiar with Commercial cash out loans. In my example I was assuming the conventional 30 year term to be honest. Commercial loans have a smaller term correct? Harder to get than residential? Sorry a little foggy in this area.

@Owen Dashner understood. In my example that would a poor return i'm sure. Hopefully I can get back more than 12k although my main goal is to have the property pulling in a nice cash on cash return. Seems to be that the ARV is crucial and the after rehab appraisal is the time when most would begin to stress.

@Jon Holdman Thanks for the clarity! That helped a lot. 

Question for both of you. Lets assume I was to get 5-10 properties through the BRRRR method. All of which have a 70% LTV cash out loan. With 5-10 properties and each having 30% equity still in them since I was only able to get a 70% LTV cash out loan, is it possible to then get a HELOC for that remaining equity in each property? Or is that equity only available or realized when you sell the home?

@Owen Dashner Gotcha. So the bank I am doing the cash out refi with is the party that moves the money back to the HML paying off my debt to them. So if the loan is 100k hard money and the ARV is 160K then the bank gives me a 70% LTV loan of 112k. That 12k minus fees and closing costs goes in my pocket? All the while my new mortgage on my rental is for 112k. I think I jacked that up but I'll wait for your reply. Thanks for the help.

@John Morgan Your post and the replied in here answered many questions for me as well. I have an alert for the word "BRRRR" and this post was worth the 20 notifications I get a day ha ha.

@Jon Holdman So when doing the cash out refinance portion of the deal, how does one pay back the HML? I feel stupid asking but I cant seem to understand that part without detail apparently.

@Vijaianand Thirunageswaram great post with some great points. I live in the Katy area and was thinking about using Katy as a flip and/or a BRRRR strategy. I helped some families in Katy remove sheet rock and insulation. Most homes in this particular neighborhood flooded 14"-18". I have a credible and reliable GC I can work with but funding is a little tricky. At the moment leaning on a HML when I cross that bridge. If it sells quick then great and if not I will go the BRRRR route. Either way your points above are a few I have overlooked but will use them to investigate further before/if I buy in that area. The families I know, all within the same block, are all moving back in with a few families leaving since they did not have flood insurance. Those that did seem to be staying since this is the first time this area has flooded in the 25+ years they have lived there.

@Account Closed I also live in Katy. Any objection if I happen to attend? I would think if a home is bought in a none flood zone (even though it recently flooded) you wouldn't have nearly as much trouble selling. I'm new to the real estate investment world but plan on having my first deal before the end of March.

Well written @Cody Noblin. I think the fuel you have inside that is tied to your mother and father are going to be a great asset and help you push through any challenges that you may face. I hear you on not coming from much. Never got what I wanted for gifts but always got what I needed. Love my parents but I have different dreams and plan to add an etirley new and different chapter to the legacy of our last name you could say. 

Anyways welcome to BP and to Houston. Although it sounds like you've been here a little while now for work. I live in the Katy area and work in the Energy Corridor (oil & gas). Planning on buying my first property before the end of March. There is an event coming up in West Houston for Bigger Pockets members. Its under the events section and I think it's on a Wednesday night in a few weeks. I would encourage going there as you will have a chance to meet like minded people and who knows maybe a partner or great lender. I will be there as a newbie as will others with some seasoned vets sprinkled in. @Matthew Gullo is the man to reach out to if you have questions. I haven't met him myself but he is heading up this next meeting from what I can tell. 

 Hope to see you there and lets connect if you go!

I might have to check this out. Newbie here and looking for my first deal by the end of March 18'. 

@Travis White my buying process is about as newbie as it gets. I am currently (starting this week) evaluating properties on a weekly and daily basis when I can. I would like to get into the BRRRR strategy for single family homes here in Houston and also look into buying multi-units out of state. I say out of state because here in Houston they are far more expensive and far and few between compared to other parts of the country. I am looking through the major websites for properties at the moment. Financing will be trickier I think. Might go traditional route if a multi-unit but likely HML if I go the BRRRR route. I am actually trying to get lunch tomorrow with a good friend and his connection who happens to be a successful realtor that not only sells homes but also invests in real estate himself.

@Travis White @Ronnie Howard hello to the both of you. I've been with bigger pockets since mid last year but I can tell you the information on here is endless and so valuable. I currently reside in the Katy area and also looking to meet local investors through BP. I have plans on buying our first rental by the end of March this year so time is ticking!! If you weren't on the webinar last night that @Brandon Turner put together I STRONGLY encourage you sign up for it. It's FREE and lasts about 60-80 minutes. My wife and I walked away very motivated and he has some free door prizes for those who attend the webinar. Well worth your time I can promise you that! I think the next one is Friday afternoon-ish sometime. Anyways welcome to BP!! 

P.S. The power of Bigger Pockets is often undervalued. I have read stories, in addition to Brandon's story last night, where entire deals from the realtor, financing, contractor, and property manager were ALL found on Bigger Pockets through networking. Often these deals were in areas where the purchaser didn't even reside.