All Forum Posts by: David Ripplinger

Sweet! I'd love to connect with you and maybe do a video chat. I'm just about to get started and will also be doing out of state buy and hold.

Full disclosure. I'm new and haven't done a deal yet. But I'm prepping quickly to do so. I have read David Greene's two books and am reading the rehab book right now, and putting together a team for my target market.

From what I understand, it's technically possible, but you are likely to hit 5 times as many financial snags along the way.

How do you pay for the rehab? If you're getting a conventional loan for the purchase, maybe it's hard to get a rehab loan of some kind. But you can sidestep that by paying with cash for your down payment and the rehab.

Doing a cash out refinance on a property that already has another loan on it may be possible, but it sounds trickier to me. Others with more experience with lending will definitely know better.

It will be harder to find good deals and act on them quickly if you don't pay cash. Some deals lenders will refuse to give a conventional loan for if the house is in bad shape.

Before considering BRRRR with a down payment, first see if you can get your hands on some cash other ways. Many investors on bigger pockets buy a lot of properties with other people's money. Typically this falls into the category of private lending and hard money lending. The idea is that you can use their money to have cash on hand to pay for a property and rehab with cash, and then after the cash out refinance a few months later, you pay them back with interest that they couldn't have gotten quickly out of typical investment vehicles. Then you end up with a cash flowing property even though you had little cash to start out, and they end up with a quick interest gain.

If I were you, I would do the exact same thing I'm actually doing. I'm new on the scene and haven't started my first deal yet, but I'm diving right into the BRRRR method out of state. I recommend that you read both of David Greene's books, and hopefully that will get rid of the mystery and fear of out of state, just like it did for me. Furthermore, with the BRRRR method, you get to reuse your same capital over and over and get a lot of practice. If one deal doesn't go optimally, you shrug your shoulders and quickly move onto the next deal. I'm not saying you necessarily have to invest out of state, but once you accept you can, you would only pick your neighborhood market if it looks just as good as the other markets in the country.

As for whether to cash out refinance an existing property to secure more capital, definitely. That's a key step in the BRRRR method, actually. But if you can help it, find deals where you can pay for the whole property and also the rehab with your liquid capital instead of getting a loan to secure the deal. Then cash out refinance after getting a renter and a new appraisal. This is basically how the BRRRR method works, and starting with all cash to buy and rehab opens a lot more possibilities.

Yep, 401k loans are awesome. No downside, in my opinion. I have done 2 in the past, one to pay off my student loan and the other for the down payment on my first home. I'll probably do another soon to get my first hunk of cash to do a BRRRR deal.

If you want to take some money out of your current job's 401k and invest it elsewhere, take out a 401k loan.

The BRRRR book (in the bigger pockets bookstore).

I read it recently. I just started educating myself about real estate investment and quickly learned that the BRRRR method is what I want to do. The BRRRR book is the first real estate investment book I read. I got through it in just two days.

I'm planning on doing my first deal by the end of the year, and that book I feel gave me a ton of knowledge and confidence in such a short time.

Google WiFi. I use it in my own home and I like it.

@Tylor Williamson Oh man, I don't recall noticing the notification for your reply to my post here. Sorry about that. Yeah, I'm happy to give them to you. I'll be in the office both Wednesday and Friday this week. Send me a private message with your contact info so we can coordinate more easily.

I'm also a newbie, and here are the three I recently purchased and am glad I did:

1. BRRRR by David Greene

2. Long Distance by David Greene

3. Estimating Rehab Costs by J Scott

All three are Bigger Pockets publications. The first two can be bought in a bundle. I only started learning about real estate investment a few weeks ago, and I haven't done my first deal yet, but I feel like these books are helping me get up to speed really fast.