All Forum Posts by: Heath D Wallace

Yeah, 9 months is way too long for a BRRRR. If the HVAC bid comes in fair, settling up with your current guy and moving on might save you more headaches in the long run here. The main issues are making sure the new contractor doesn't blame the old one for everything.

No signed contract is both good and bad. Good is that you can just kick him to the curb and move on, The bad might be that you had no terms at all to go by, so how could he have violated anything? Maybe it was assumed to be a 2 yr long job..... :-)

But I would feel comfortable, if I were you, to just move on. Pay him for what he has done of course, but that's all. Send him a cease and desist order (or similar) in writing. Make sure you have a lot of stuff in writing, print your texts, take a lot of pictures....in case he sues you...

First off—congrats on getting to the finish line with your first BRRRR. That's a huge milestone, especially if you managed the rehab and leveraged a HELOC efficiently.

As for your next move: trying to acquire a future primary residence while you're still in the middle of refinancing can be tricky—but there are some paths worth exploring, if structured carefully and conservatively.

Here are a few creative, but grounded, ideas for the down payment:

1. Cross-collateralization (or a blanket loan):

If the equity in your BRRRR is strong post-refi, some portfolio lenders may allow you to use that equity as security toward the down payment on the new property—without needing to actually pull cash out.

2. Seller financing:

Not always available, but if the seller owns the home free and clear or is open to flexible terms, you could negotiate a small upfront payment and structure the rest as an interest-only note for a year or two. This buys you time to build equity elsewhere or increase reserves.

3. Private money/partnership equity:

If the new property is a solid long-term play, consider bringing in a partner for the initial down payment—especially if they’re looking for stable, passive exposure and you’re managing the asset. Offer a fixed return or equity share upon refi or sale.

4. Delay and build liquidity:

Sometimes the best move is not to stretch too thin. After you refinance and stabilize your BRRRR, use that cash flow and freed-up HELOC to position yourself stronger for the next opportunity. Deals will always come—but staying liquid gives you negotiating power.

Not a big fan of the "Creative push" out there right now as anything “creative” should still pencil out conservatively which is not being taught. Don't let the excitement of opportunity outpace your margin of safety.

 Joe, That is excellent advise. A trust doesn't necessarily have a situs, so it could be anywhere, but you "may" want to have a situs in it like "formed under the laws/statues of the state of Texas.

And Heath, Why do you need to move it to Texas? Because the property is in TN, that state will still govern the laws regarding it, but a trust makes a lot of sense.