All Forum Posts by: Jeremie Torres

This is a practice deal analysis for BRRRR.
Subject property = 50k. 
Rehab estimate with 25% overrun = 31250.
Closing cost = 1500
Purchase cost, cash = 82750.
My ARV calculation = 151632.

After refinancing, how did I become upside down of -$26,085?

I played around with the numbers and I only change the purchase price to 100k then that's where it gave me a positive outcome after refinancing:

It doesn't make sense that I have to purchase the house 50k more than it's asking for just so I can be on a positive side of things when it comes down to refinancing.

Can someone explain what I'm doing wrong, please?
I already appreciate you're reading this.
Thank you.

We all know how beautiful this strategy is specially after your ARV expectation come to fruition when you're on the refinancing part of it. Get to cash out your initial investment or to payoff your private/hardmoney lender or reinvest on your next BRRRR.

But what if some years later and the value of the property went down significantly? Will the bank come asking you to pay them back of that lost value? How often does it happen, if ever? 

@Jimmy Rivera How goes it with the unit? If you don't mind sharing, would really like to get some ideas about your experience. Where were you able to get the property? Have you found out about the process of refi out of NACA? I think I can put up with the process with NACA since I have some time til next year to purchase my first property. Hoping to also get a multi unit. But I know I won't be living in it forever so I kinda want to get more insight about refinancing out of NACA and what will they require and how's the process gonna be. As an aspiring investor, I wouldn't want to be limited to just one or two units as my rentals. Definitely want to diversify. Thanks for any input you may share.

Alright, I’m just gonna go ahead and stick my head out there and get straight to the point. All business.

If you’re someone who is outside of Baltimore or maybe even inside of Baltimore and wants to invest here but unsure of cos you don’t have eyes, arms, and legs here well I can be your guy. I wanna work for you even if it means interning for you. I can’t pull the trigger on my first deal for myself til next year anyway cos I’m locked in with my apartment lease so no need to worry about me siphoning any potential deals from you. Plus, no point of screwing you if I want to build my network. I have no problem signing an agreement with you just to put you at ease. My main goal is here is to build my network, partnership, and to learn.

You have a property you want me to take a look at? Get at me and I’ll even get pictures for you since I do photography as a hobby. Check our my IG at: WildBogie for pix I’ve taken on my spare time. You need me to do some follow ups, give it to me. Whatever you think I can do to help you, I’m here to help and to build trust and relationship with you. I hope to be making some business with some of you.

I get both @edward and @mark points and concerns. One hand is to force the appreciation and the other is to risk the upfront money and may wait for some time to start seeing positive cash flow cos of a possible longer standstill getting it rehabbed and finding a tenant. But say he did go with the latter and put up 10k for the rehab and took him mos to finally find a tenant, wouldn't the rehab at least help that the property went up in value already? May not be cash flowing yet but at least the value is even higher and sets him up for a refinance a few months down the road and possibly get his initial funds back? I'm new to this and I'm trying to grasp the idea of BRRRR. Please let me if I got this right or wrong. I would very much

appreciate it and hopefully we can give @Dominique Ellis a broader landscape. Thanks, all!

Thank you @Ozzy Sirimsi yup I’m not looking for a home run on my first one. Just really wanna get started and get going. 

Thank you @Michael Kissi I’m actually planning to start looking by December. If me and my wife get lucky and find one early then we’ll consider all the costs down to the penny. Thanks again!

@Alan C. @Sebastian E. @Tim Jacob I really do appreciate the cold hard truth. Giving it to me plain and simple and with all honesty. Whether this is going to be a successful journey for me or not, I'll let the entire BP community where I failed and succeed. I will keep everybody posted. Thanks again, gents. 

Hello all, 

I'm new here and new to this. I have this burning desire to become financially independent cos I can't do this 9-5 for 30 more years. Insert investing* I dip my hands a little bit into the stock market and had a little success but I figured that RE is where I can really put my money to work for me. I've been learning about RE investing since the pandemic lock down started (I guess it's a blessing in disguise). Anyway, here's my situation, I'm locked in with my current lease in my apartment til April 2021. Good thing with that is I get to focus on saving and learning. I managed to erase all my debts, shoot my credit score just a tad bit short of 800 and even stopped contributing to my 401k for the meantime to fund my first property/investment/both purchase. I know, I'm aware of my company matches that I'm missing out on. But I've always wanted to have my own business and I decided that this is going to be it for me and I'm gonna fund it with the money I used to contribute to my 401k. I'll probably get back to it once I get started and build momentum with RE. 

Now, say April 2021 rolls around and here I am ready to pull the trigger on my first investment, now I'm torn between purchasing a primary home for me and my family or to purchase a rental (Which means another year of lease in the apartment while having a rental property) OR possibly have both (A duplex or something to that effect). 

I really don't know what I'm asking. It's just that window shopping and seeing these great properties come and go makes me feel like I'm missing out on opportunities cos it's difficult for me to make a move at this time, though I know there will be plenty more opportunity. Am I anxious? maybe. But I'm disciplined enough not to make a dumb move and break my lease and possibly put me in a position to mess things up. I'm in great position for next year to make my first move. 

I'd love to network with folks who has the same interest. 

Thank you for your time.