All Forum Posts by: David Ounanian

 Hey Alex!  I used a local bank here that has a commercial and residential division.  I've fostered a relationship with them and the commercial side will fund 80% of the purchase and 100% of the rehab and then at the 6 month mark they will move it over to the residential side so I can refinance my cash out and lock in a 30 year fixed rate.  Unfortunately this particular bank doesn't work with out of state buyers but I can get you in contact with another bank that will.

Hey @Matt Abrams thanks for the recommendation of Chris at Guild Mortgage in St. Louis! He is awesome! We are refinancing 60 days after purchase doing no renovations on a tenant occupied single family. It's the easiest BRRRR I've done to date! He also helped me work around the 10 property limit I ran into with other conventional lenders.

On the portfolio side we've had a lot of success with Carrollton Bank.  They seem to have the most flexibility on what and who they will lend on and have came in to save a lot of transactions for me that would've fallen through due to financing.  Let me know if you'd like me to make an introduction?

 Thank you Julie!  You helped me pull it off!

 Thanks Chris!

Thanks Nathan!

@James Walker we use a local insurance broker that shops multiple providers for the best coverage. Neither my clients or I have found anyone that can beat their rates. Let me know if you want me to send you the referral.

Investment Info:

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

Purchase price: $225,000
Cash invested: $40,000

This was my first multifamily investment deal. A 4 family in the St. Louis Hills area.

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

I was interested in this type of deal because of the potential to add value to the property and refinance out my rehab costs and down payment using the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat).

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

I found this deal from a new investor I connected with on Bigger Pockets. He had never done a deal before and had a lead on this property from a family friend. I coached him through negotiations with the seller and met him at the property to help him make an offer. In the end he ended up wholesaling the building to me and made $10,000 for himself while I got a great deal on a 4 family in a nice part of town. A true win-win.

How did you finance this deal?

I used a bank to fund 80% of the purchase price and 100% of the rehab. For the 20% downpayment I used a HELOC. 6 months later I refinanced the property with a 75% LTV 30 year fixed rate loan.

How did you add value to the deal?

I updated bathrooms and kitchens and painted throughout.

What was the outcome?

The outcome was a property that now appraises for 100k over what I have into it (price + rehab).

Lessons learned? Challenges?

I learned how to deal with existing tenants. I gave them options for staying at a increased rate or the option to move. Once a tenant moved I began renovating that unit.

@Carl Flint welcome to BP!  See my responses to your questions below.  Good luck!

1 - This depends on your goals really, both can be great investments.  I have both single family and multifamily in my rental portfolio.

2 - If you want to start flipping you'll need to start talking to sellers and making offers.  Once you have a line on a potential deal the money will come easy.  I have partnered with newer investors and funded deals that they found.

3 - Yes network with as many people as you can.  Agents, lenders, wholesalers, attorneys etc.  Get yourself a mentor or hire a coach.

Who is everyone using for direct mail?  I want the ability to setup a drip campaign online and then be able to add addresses in bulk or one at a time as I come across them.  Does anyone have any recommendations for online direct mail providers that can do this?

Example:

I setup a drip campaign to mail a postcard every 2 weeks for 4 months.

I import a list of 100 addresses to my campaign and the mailers start going out.

A week later I add 20 more addresses and those mailers start going out.

2 weeks later a friend tells me about a house and add 1 more address and mailers start going out to that house.

Etc

Every month I host a virtual meetup for St. Louis investors to connect and learn what's working in our market.  We would love to have you all in attendance.  RSVP at one of the links below.

Bigger Pockets Event Page:

https://www.biggerpockets.com/...