All Forum Posts by: Isiah Ferguson
Isiah Ferguson has started 66 posts and replied 315 times.
Post: Is it weird to buy rental properties instead of primary residence

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Not weird at all. I am still renting & I purchased my first duplex a couple months' ago which is cash flowing completely fine. My realtor thought I was crazy because she said people usually purchase their primary home first. I have a plan and I'm sticking too it and when the time is right, I'll buy the home I really want. My main focus is rental properties now. GoodLuck and you're on the right path.
Post: I'm POOR....but DONT want to be!

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
I'm still a newbie myself but my suggestions for getting started with little too no capital. You should consider networking and creating partnerships. FIND deals that will allow you to do Owner-financing, & subject 2. Their not easy to find but when a TEAM and Marketing anything is possible.
Post: PM or Self Manage First Rental Property

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
I say factor in PM in your expenses but for your 1st rental, you should self manage.
Post: My first BRRRR deal in Rochester NY

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Brett Schickler Thank you. Great good and good luck.
Post: My first BRRRR deal in Rochester NY

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Brian Garrett OKAY, I GET IT NOW. 15% OF 85K = $12,750 WITH CONSIDERATION OF CLOSING/HOLDING HE WILL BE ALL IN $22,750 ALL IN. WITH 15% DOWN, NOW HIS LOAN AMOUNT IS FOR $72,250. NOW, YOU REFI AT 80% OF 115K WITH GIVE YOU 92K. WITH THE 92K HE PAYS OFF THE PREVIOUS OF 72K FROM THE 85K LOAN. FROM 92K HE PAYS OF THE 72K + HOLDING/CLOSING COST WHICH IS ROUGHLY 10K TOTAL WHICH = 82K. HE PAYS HIMSELF BACK 10K FROM THE REMIANS AND STILL HAS ROUGHLY 3K STUCK IN THE DEAL. I'M STILL MISSING SOMEHTING, I FEEL IT SMHHHHHH
Post: My first BRRRR deal in Rochester NY

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Originally posted by @Brian Garrett:
@Isiah Ferguson He actually has $95k into the deal. You have to count the $6k for closing costs and the $4k for holding costs as part of the total. So the $95k minus the $92k leaves $3k.
so the initial is 85k (65k purchase + 20k repairs = 85k) plus hold and closing which is an extra 10k that makes in 95k in with a $22,750. So with the 92k cash out where does he pay himself back if his pays the loan at 92k. what am I missing ?
Post: Refinancing low income properties

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Originally posted by @Joe Villeneuve:
Originally posted by @David Grabiner:
@Joe Villeneuve So current ARV is 45K then you sell 80% for 36K in doing so you give up 80% of Cash flow and future appreciation. If current Cash flow is 825 then you gave up 660 per month to get 36K not including what was given up in future appreciation. 660 per month seems like an expensive way to get 36K.
Now I like the creative way to solve many different challenges but it seems like the owner gives up a lot in this solution. The beauty of leverage is that you also leverage your appreciation but in this instance you are giving away your appreciation as well. The original owner would be better of getting a 20 year loan at 12% interest then giving up that much cash flow. The loan would have a lower monthly payment and in 20 years you would have all the equity back. I see why this is good for the Cali investor as they get a good return but why is it better for the original investor than packaging properties together and getting a bank loan?
Not expensive at all...in fact it's far less expensive. Actually, it's free to me. Financing, loans, are just another way to leverage cash...which is what you are actually leveraging. In both cases, the original money comes back to me "with friends" (profit and cash flow). There is more cash flow without the loan (no debt service, and no credit partner).
I'm not giving up 660/month...I'm getting my original money back, with friends...to use again on the next deal, repeated over and over and over and... This is faster (no seasoning), and I can get a higher cash back.out (no 75% limit), than if I went the refi route. That $36k goes right back into the next deal, flipped through cash leveraging, and repeated over and over again. I'm not losing anything...I'm compounding my $36k.
Why would I want to wait 20 years to get anything back? I get it all back right away. If I left that in, even if I used only 20% as a down payment, I have to wait to get my money back through the cash flow. My way, I'm not waiting for anything...and that reduced cash flow you are frowning at, is pure profit...from day one...and, that cash I put in, isn't just sitting there dead waiting for the cash flow to catch up in, what did you say?...20 years? We could have 2 or more 2008's occur within those 20 years, and my "resting" cash and supposed equity build disappears.
If you understand what leveraging does, you'll see that this is in fact just a different way of leveraging...just without the added subtraction of loan cost and credit partner off the top.
If I took that $36k and split it up so that it represented 20% down payments, it would get me $720k in value...and I would be dead in the water until I generated more down payment funds...and, I would have spent that $36k since those funds went in one direction...away from me.
If I took that same $36k and paid cash, then took my route and recovered that cash plus profit (and kept CF), then move my recovered funds plus friends into the next bigger deal, then repeated this over and over again I would be light years ahead.
One more thing. If I take the "spending" the $36k for DP's, how much have I spent and how many uses did I get out of that $36,000? Answers: I spent $36,000 for 1 use.
If I take that same $36k, and "use" it an unlimited number of times, with each time I use it I get it right back with a profit, to use it again, and again, and again...how much have I spent, and how many uses did I get out of it? Answers: I spent NOTHING for an unlimited number of uses.
Wow. genius like. Get infinite cash flow for no reason and get the 36k all in cash back. This is the BRRRR method using low end properties.
Post: My first BRRRR deal in Rochester NY

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Originally posted by @Brian Garrett:
@Brett Schickler So you're putting $12,750 down, $6k closing costs and $4k holding costs makes you're out of pocket investment $22,750 total. If you get 80% LTV based on ARV of $115k that would cash you back out $92,000 as you mentioned. $92,000 (cash out refinance value) minus $95,000 (total investment) leaves you with $3k of your own cash still in the deal which you'll easily make right back up through the positive cash flow. Is this how you're seeing it as well?
I'm trying to understand your analysis. Soo he's $22,750 total in the deal which includes down payment and closing/holding cost. He refi at 80% LTV at an ARV of 115K that would cash him out a 92k. With 92k he pays back his original loan of 85k which leave him with 7k remaining correct ? How did you guys get 3k left in the deal ?
Post: Jay Hinrichs is FINALLY on The BiggerPockets Podcast!!!

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
@Jay Hinrichs Thanks for all the insight. You are appreciated !!!
Post: I closed on my first deal!

- Investor
- Charlotte, NC
- Posts 320
- Votes 157
Congrats & Good-luck the rest of the way !!!