All Forum Posts by: David Paul Westenberger

Ether way you go you will do well. 50/50 partnership allows you to stretch your money and grow faster with less in each deal. The best day to buy a deal was yesterday. If you have someone you trust who has different perks that complement yours then by all means try it out. The worst that can happen is that it does not go well and you had a good learning experience, and you wont make the same mistakes again on the second deal. For me if I had no deals and I wanted to do 50/50, find someone who is more experienced to do a deal with and learn the ropes. 

Run the numbers as if you have a property manager, and don't make them rosy numbers.

Leverage more by putting less down so you can keep growing

Create group chat in messenger for everyone in the house hack (this is if its a SFH)

Put labels everywhere to stay organized.

Have more than one fridge (If SFH house hack)

Put up good dusk to dawn lights and cameras so your house hack has more security.

when you grow and leave a house hack make someone in charge.

always work with your tenants when they lose there job, get laid off, ect...

use cozy to screen tenants.

hope that helps.

Definitely house hacking is the way to go. even better if you find a crappy house and you fix it up, then do a heloc to create additional income you can use when needed.

@Alex G.

No lenders have all the money yourself saved or with partners.

@Alexander Felice

Thank you, glad to talk to someone who has done it before!

I have listened to your podcast in the past and want to say thank you for sharing your knowledge on BP! 

Did you have to find a savvy realtor to work with who understands this type of strategy, and how do you convince the seller to be okay with adding the rehab costs to the closing?

Regards,

@Jarrod Covey

yes I'm aware of that type of loan for purchase / rehab cost. I should have clarified at the start that the property would be bought with all cash(purchase price + rehab). Its why I would be doing a cash out refinance in the first place. That strategy can only be done for people who will be living in the property as a primary residence, correct? Ether way some people are able to do this. I just want to know how its done so I can replicate.  Its even been talked about multiple times on BP podcasts before. 

@Wayne Bolen

Sure, you put in a bid on a foreclosure on the MLS that's 20-50k under ARV due to some light to medium rehab work needed.

 then when you go to close you ask to put in the cost of the rehab into the purchase price of the home so lets say the cost of the house is 100k, but rehab is 20k, so you buy the home at 120k. knowing your going to do a cash out refi after rehab is done or right away, getting up to the total cost of the house at 120k. meaning instead of getting just 100k you get the 20k extra due to taking the extra mile of adding the rehab cost to closing. 

Regards,

Hi all from Austin and surrounding areas!

Here me out and let me know what you think.

Most lenders only let you take out 75% of ARV up to the purchase price of the house.

I am looking to network with realtors and lenders who have added the rehab costs to the closing on a house to help with the process of cash out refinance of getting the cost of the purchase price of the house(cost of house + rehab). 

If anyone has done this before, I would like to network with you and ask more questions on how to do this process once you have a accepted offer on a house.

Regards,

- David W

join a BP mastermind! 

After joining a couple I found one for me that meets Bi-monthly to discuss our goals and business.

Regards,

David Westenberger

I am in the same boat, currently have 3 properties. 

tweak your strategy a little, and you can grow faster, maybe leverage more / find a partner so you can start the BRRRR method sooner than later. Remember every market is different maybe you can afford BRRRR properties in a different market where homes are worth a lot less.

The main thing is you keep the ball rolling and never stop. 

If I was in your shoes, I would start talking to lenders asap and get pre-approved.

Remember you don't have to put all 20% down. I just put 10% down conventional loan recently on my house hack.

The less you put down the more you have to leverage a year later when your ready for your next house hack.

I would wait till you know where you will be working next and if you know the area start looking asap as soon as you know your next job location. took me 3 months to find and close on a property. 

I used Redfin to look for properties as i set up filters to narrow the results getting updates daily on new homes that come to the market so you know all the homes available in the area that meet what your looking for so your ready to offer.

Sometimes foreclosures / bank owned properties come on the market if you can get one of those you can rehab it then do a HELOC creating extra cash you can recycle later on other opportunities(BRRRR) that come your way.

Hope that helps.

- David W