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All Forum Posts by: Elwin Green

Elwin Green has started 7 posts and replied 15 times.

This post is primarily for lenders and loan brokers.

I'm thinking of buying a townhouse complex with seven 2/1 units, listed at $465K.

I see it as a potential BRRRR project. I haven't viewed it yet, so I don't know what rehab it needs. In fact, since it's already occupied, it may not *need* any rehab at all. But let's assume that it needs cosmetic work, but not enough to move the needle much on value. For easy numbers, call it $500k all-in.

My question is, what type of financing might a lender offer on a BRRRR project in which the primary means of increasing the property's value is not making physical improvements, but improving its cashflow by increasing rents?

In this case, the units are all priced differently, with rents ranging from $756 to $850, for a monthly total of $5,551. According to the county housing authority website, if they were re-rented through Section 8, they could bring in $1,623 each, for a monthly total of $11,361 - more than twice the current income.

The GAI would rise from $66,612 to $136,332.

Would you, or the lenders you work with, finance a $500K purchase+rehab with an eye toward refinancing based on a $136K GAI?

Post: Looking for a recommendation

Elwin GreenPosted
  • Posts 15
  • Votes 3

I expect to close on an investment property in two days, and need to secure insurance. Looking for a broker or an insurer who can get a policy in place by then.

Glad to answer any questions that I can.

Thanks!

I seek financing options for the first and third Rs of my first BRRRR project.

I have a 2BR house under contract, and have funds available to close (about $32K).

Of course, the house needs the first R - Rehab.

Is there a lender here who would lend $20K-$25K against a free and clear property for rehab that would raise its value from $34K to $72K (per an appraisal in January)? (My credit score is sub-600; I know that makes it harder.)

After rehab, I anticipate renting it for $1622/month through our county's Section 8 program. After all expenses, I anticipate a monthly NOI of $1275.

That brings us to the third R - Refinance.

Is there a lender here who would make a DSCR loan based on a monthly NOI of $1275? If so, for what amount, and on what terms - especially, with what seasoning requirement? I would need to pay myself back the funds to purchase ($32K) and pay off the rehab financing ($20K-$25K). I would WANT to borrow as much as the property would support, to better position myself for my next deal - I am working toward a $3 million portfolio.

Post: Just introducing myself

Elwin GreenPosted
  • Posts 15
  • Votes 3
Quote from @Gary Swank:

Hi Elwin, first off let me say that I give you a lot of credit for investing again.  I have a feeling things will work out a lot better. I'm currently working with another investor in developing vacant land.  They are interested in Lawrenceville.  What area(s) are you considering? I've lived here my whole life and know the area and market very well. Look forward to hearing from you. 

Thanks for the affirmation. Things will work out better this time bc I'm a different person, differently positioned. The vacant land that I'm looking at for possible development starting in 2026 is in North Versailles. I need to do all the front-end research.

Post: Just introducing myself

Elwin GreenPosted
  • Posts 15
  • Votes 3
Quote from @Julio Gonzalez:

Glad to have you on the forum, Elwin! 


 Thanks!!

Post: Just introducing myself

Elwin GreenPosted
  • Posts 15
  • Votes 3
Quote from @Max Wilhite:

Welcome, Elwin! It’s great to see you jumping back into real estate after all these years. The lessons you’ve learned from the past will definitely be an asset as you work toward building that $3 million rental portfolio. Midterm rentals and vacant land development sound like exciting avenues, and I’m sure you’ll find plenty of support and insights here. Looking forward to seeing your journey unfold—best of luck!

Thanks!!

Post: Just introducing myself

Elwin GreenPosted
  • Posts 15
  • Votes 3
Quote from @River Sava:

Welcome Elwin!

Best of luck as you jump back into the game 


 Thanks!!

Post: Just introducing myself

Elwin GreenPosted
  • Posts 15
  • Votes 3
Quote from @Seth Timmerman:
Quote from @Elwin Green:

Hi, all...

Half a lifetime ago, in the late 80s and early 90s, I took a run at real estate investing. I made enough mistakes to cause enough pain so that I crawled into a corner and curled up in the fetal position for 30 years. Now I'm re-entering the game, with the basic goal of assembling a $3 million portfolio of rental properties, with a focus on midterm rentals. I am also exploring the possibility of developing vacant land. 

I look forward to learning a lot here, and to establishing mutually beneficial relationships with fellow members!


 Elwin

I know there's a group called ACRE...

 I'm an ACRE member, and am enjoying getting to know folks there. Thanks for the invite ; don't know when I'll make it to Morgantown. One thing that I've already learned on my second go-round is not to buy more than an hour away :)    - at least, not yet!

EG

Post: Just introducing myself

Elwin GreenPosted
  • Posts 15
  • Votes 3

Danke! I have zero connections in NC, but if by chance something emerges, I'll let you know!

Post: Just introducing myself

Elwin GreenPosted
  • Posts 15
  • Votes 3

Hi, all...

Half a lifetime ago, in the late 80s and early 90s, I took a run at real estate investing. I made enough mistakes to cause enough pain so that I crawled into a corner and curled up in the fetal position for 30 years. Now I'm re-entering the game, with the basic goal of assembling a $3 million portfolio of rental properties, with a focus on midterm rentals. I am also exploring the possibility of developing vacant land. 

I look forward to learning a lot here, and to establishing mutually beneficial relationships with fellow members!