All Forum Posts by: Anthony Gayden

Just posted the sale details on a 240 unit deal that was recently sold Hit Another Home Run: In 18 Months Created $4 Million of Value

Hi BP members, First of all this is a wonderful real estate community forum..! Thanks for the creators :)

For last couple of weeks I have been looking into BP blogs, webinars, podcasts and getting to know about different real estate strategies. I found BRRRR or BARRRR ( BRRRR with advertising at right time to get some tax benefits ) as the good fail proof strategy. I have seen people done a lot of flips using this strategy. As I was reading , I found that there will be seasoning time around 6 months for most of the banks to refinance a house. So, with BRRRR strategy I can do only 2 deals per year with my initial cash.

What are the different strategies to get past this barrier ? 

What are the ways to get refinance within 3 - 6 months seasoning ?

One of the option that I read was delayed financing. But the limitation of this method is " The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan ".  This would not give back the rehab cost paid by me.

I really appreciate any inputs on the questions that I have. 

The seller signed the resale contract 10/30/2017 and I deposited the earnest money 10/30/2017 so everything is currently in motion. The issue I have is that the broker has sent a lead-based paint hazard document (10/31/2017) for me to sign, and I also discovered on my own that the property will be taxed in two separate counties as opposed to the one county the agent-provided information on which made the property attractive in the first place. With this newly discovered information, the numbers no longer work and I would like to walk away from the deal altogether. 

Before seeking legal advice from an attorney I wanted to reach out on BP and see what y'all thoughts were. 

@Anthony Gayden, research shows that while money can buy happiness to a certain extent (someone making $50k is more likely to be happy than a person making $15k), beyond $70-something thousand (I forget the exact number), it doesn't really increase happiness.  Someone making $80k and someone making $180k are more or less equally likely to be happy.  Interesting...  (Not saying you're trying to buy happiness, I just thought it was interesting since you discovered $100k isn't a lot of money.  You might feel that way about $150k as well.  I guess you'll find out when you make it.  ;-) )

Before real estate, I had limited financial intelligence. I really had no idea about money at all. Never made much, never had much.

I served in the Marine Corps, making a low-low income. Then I went to college, where I spent 4 years doing 12 hr shifts as a nighttime security guard, again, making low-low wages. I always justified the poor wages with statements like "I am in college, I'm supposed to be struggling. But when I start my career, you all just watch out!"

Then I finally graduated, Dean's List, with a degree in Mechanical Engineering. I landed a job here in town, and was beyond ecstatic that I had "finally made it" as far as my income was concerned. I had grand visions of all of the things I was going to do for my fiance and I, the kind of truck I would drive, the upgrades I would do to our home, you name it. I was on Cloud 9.

That was, until I received my first paycheck. What was leftover, after having worked 90 hrs in the past two weeks, was pitiful!! To say the very least. I felt cheated. Robbed. Used. 

Words cannot encompass the symbolism. 

I remember sitting in my bedroom, and coming to the realization that all of those visions I had were not going to come true anytime soon. Not a single one of them.

Something changed in that moment. I began reading again. Lots and lots of books. 70+ a year since I had this epiphany. And that changed everything. 

Real estate reared its beautiful head, and I bought my first deal within 45 days of understanding this phenomenal wealth building vehicle. 

I'm not where I want to be, but I am in a much much better position than I was after I received that first paycheck. I still have that job, as all cash is currently reinvested, but those visions I had at the start are beginning to poke their heads above the surface.