All Forum Posts by: Jeremy England
Jeremy England has started 22 posts and replied 296 times.
Post: My First BRRRR: Success or Failure?? LOTS of Details and Pics

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Seems you were going great til the appraisal. I would say buy in areas that have more reliable comparables so your appraisal value is more predictable. Elsewise, I think you have a solid plan.
Overall still success because like you said, you don't have 25% plus closing costs in the deal. But you'll run out of money after a few projects if you scale.
Post: Self Directed IRA - how to with other people’s money

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
The cleanest way imo is to borrow the funds from that persons SDIRA (can't be family btw)
No equity split, no partnership, just a simple loan.
#1, this keeps the lender clean in that they are not tap dancing around any requirement they do no work on the project or they aren't writing personal checks in lieu of SDIRA checks.
#2 it keeps the transaction clean in there is no confusion about what each party is getting or risking.
I've been researching this alot lately and a business associate is actually opening an accout with one of the custodians on BP and they plan on lending to me for deals.
Post: BRRRR refinancing costs high

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Originally posted by @Albert Bui:
Most investors would be pretty happy with only a few grand stuck in the death and cash flowing.
The 100k at 5.50% on 30 year AM/Term (Aka a fannie mae loan) would be around 550 per month and I'd guess your taxes and insurance are around 150 per month maybe?
This should leave you with a margin of 300 or so for repairs, cash flow, and misc.
Every 10k at 5.5% on 30 yr AM/Term is roughly 55 bucks a month so if you reduce your loan by this amount (aka keeping your money in the deal or refinancing with a smaller loan than 100k) will improve your cashflow by 55 but lowers your cash on cash return since you have 10k more stuck in the deal and cash flow / cash in the deal will result in a lower %.
Looks like you're doing well with only a few grand, overall yeah?
The loan is actually 75k with payments of 475:mo. (No escrowing of taxes and ins)
Im working it out with a credit union for better terms. They had a survey fee on there, indont think one is required, escrowing of taxes and insurance. So the 8k figure will realistically be as low as 6000. Ill probably just pay the difference in the mtg and personal loan prior to closing so that will be another 3k. Probably go to closing paying 2500.
Im fine with how it turned out. Next one however i hope to spend even less of my own money. If you spend 5-7k each house, hopefully by the 3rd home it is self sustaining. Meaning the profits from the annual rents are all you need in terms of money for the brrrr strategy
Post: BRRRR refinancing costs high

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Originally posted by @Kristopher Hanks:
I'm having a hard time figuring out what the problem is with this deal. All of us would love to not have a dime in all of our projects and cash flow $1,000 per month on every property. But it looks like you have a house that is worth about $100,000, bringing in 1% gross per month and you will only have 7k in the deal. So, cash on cash looks like 58.3% if I calculated correctly. What more could you ask for? Remember the tenant is paying the interest and points on the loan, not you. Get your money out of the deal and move on to the next one.
Nothing is “wrong” with the deal per say. Just putting my experiences out there with the brrrr strategy. Im just posting my experiences so others can offer feedback and perhaps learn some things.
Post: A fraud story in our first BRRRR!

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
I swear. Im hoing back in the construction business when i retire. Honest contractors are in short supply.
Post: Anyone doing small sdira lending?

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Originally posted by @Robert S.:
My biggest issue in lending out construction money comes up when establishing my lien position. A higher interest rate compensates for the risk of being far down the line. How much interest is enough to make you comfortable with the loan? An important question would be, how much interest will you get paid, and how much return does that translate to over a given time period? If the numbers aren’t enough to justify the weak lien position, @Levi Rudder offered up a pretty decent solution with his notes investing strategy. Perhaps he is taking on new investors as clients.
Thats a good point i didnt consider. Being in a second or further lien position is risky. Would def require higher rates and careful underwriting.
Post: Anyone doing small sdira lending?

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Originally posted by @Levi Rudder:
Lending is ok, but requires a decent amount of legwork per transaction especially if the collateral is only the RE being rehabbed as in your describe transaction. In my opinion it would be better suited invested in something that will get you good returns without having to continually work to put your money out. With my smaller IRA accounts I will put them into residential notes that I get cashed out between 12-36 months and just rinse and repeat. That is also what we do with our non IRA money as well and we do it full time.
Im not schooled on this at all really. Residential notes? What are they and Is this done through a company?
Post: Contractor requesting 50% Upfront

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
I would never pay 50pct up front. You are removing his incentive by doing that. 20-30pct avance is reasonable but only in a labor and materials contract.
Frankly, younshould find another contractor even if he agrees to the 30pct down. Fact is he tried to take advantage of you.
Post: BRRRR refinancing costs high

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Originally posted by @Natalie Schanne:
@Jeremy England - Congratulations on your deal. Going forward, is this the best you can expect to do in your market? If you can get a 100,000 Sofi loan, you must be doing very well personally. Try thinking outside the box in RE. My friend bought a 2000sf house in NJ for about 200k all-in near a college and gets $5000/mo (owner pays utilities) renting by the furnished bedroom to working professionals. borrowed 100% of the money at 7% from friends and family. So after taxes (600), utilities (900), and interest (1200), there’s still $2300/mo of cash to pay towards additional rehab / beautification and/or paying down the loan. Now this is more management (higher turnover) than a tenant who might stay in your house for the next 6 years, but could the cash flow be worth it?
If i were your friend getting 2300/mo in cashflows i would hire someone and have true passive mailbox money
Post: BRRRR refinancing costs high

- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Originally posted by @Michal Sypolka:
@Jeremy England I just refinanced my rental. I also wanted to go with a local broker but their fees were high. I ended up going with Better.com, which partners with BP. Their fees are low and I believe you get a $500 credit through BP. The entire paperwork process was done online and was very smooth.
Thank you for that referral. I will definitely look into that