All Forum Posts by: Donald S.

I wish you had put it on the meetup portion of bigger pockets, I searched there and didn't see anything for StL for this week. Hopefully next month I can make it out. 

HI! welcome to the forums (posting at least), when you say advise for interviewing with a broker, do you mean a Real Estate Broker in order to get a job (or for them to hold your license), in order to find one to help you invest, or a mortgage broker? 

so 1st thing, @John Leavelle, is a pretty smart guy so listen to what he says. 

To help you understand BRRRR hopefully a little better, the "cash out" refi portion is only giving you cash to pay off existing debt (the purchasing debt in this case) and if there's any left over you're allowed to take it as cash. Sometimes people can get good enough numbers to do a Cash out refi for everything they put into the house+the original mortgage+a little extra, but not always, it's actually pretty difficult because every dollar you pull out is more that goes into the refi mortgage payments so it eats into the property cash flow.

The 2nd part is you will probably need to find a place with more upside potential than offering 380k when it's valued at 425k if it needs 40k in work. You need value add, that's why you'd need almost 1/2 price like you said. A deal I'm working on here for example is asking 125k, comps for ARV are ~210k, and it needs a good bit of work, probably 25-30k, so I'm offering 100k (210k*70%-30k=117k-5k closing-~3k holding=109k, then find a round # to start my offer at). This is why finding the right deal is probably the most important part of doing a BRRRR.

Finally, if you're going for bank financing on the front end (the purchase) and the back end (the refi) I would call around to banks, mortgage brokers, and credit unions and ask about their terms and policies. They probably can't quote you an exact % but they'll tell you if they work with investors, their LTV% on Cash outs, if they'll do a Cash out for the appraisal price or only off of the last purchase price (that's a deal breaker), seasoning required (6,12,18+ months) average APR currently for NOO loans, min credit scores etc...I was able to find a bank that is willing to do both parts, front and back end, for 20% down on the purchase, 75% LTV on the refi, 6 month seasoning period, and refi off the latest appraised value. basically everything I wanted except I can't do it in my LLC.

Good luck! And who knows, if he's desperate enough to sell the property maybe he'll go for 1/2 off. 

Maybe it's my screen, but your spreadsheet is too small to read even when I pull it out to it's own window and zoom in. You might want to type out some of the more pertinent details for someone to be able to help you out. From what I can see though, why are legal expenses so high, looks like either 15 or 25k? 

check out the ultimate beginners guide from BP. It's free! And read and learn as much of the beginners blog posts as possible, the BP podcasts are free, start at the beginning, maybe scrape  together enough money to buy Brandon turners book on no and low money down investing. 

To land a deal with no money you'll have to bring something else to a partnership, time, knowledge, or hustle. Good luck! 

If you like the unit after seeing it, and hopefully you can see the basement also, put in your offer with contingent on inspection and/or subject to buyer approval. You should be able to view the whole property once a contract is accepted, and at least just prior to closing. So if they're trying to hide something it can come out before you've bought. Also remember "if you put in an offer, and don't feel embarrassed by how low it is, you're doing it wrong".

 It's at Heavy Riff Brewing in Dogtown, 5 till whenever. Dec 28th. Come on by. 

For some reason I can't tag from my phone. But, @Victoria Crump, I'd be happy to help you out with local area knowledge. Feel free to PM me if you have a question on something here in St. Louis. 

@Quinton Slay, are you coming to the BP meet up on the 28th? Great place to meet other local investors.

You tube will teach you (almost) anything you need to know when it comes to renovating. It's taught me just about everything. 

I don't know if it would be in anyone else's book, but for me I'd consider that deal a homerun! May have been an "Inside the ballpark" homer because it took a little more work, but damn those numbers are great. Congratulations man.