All Forum Posts by: Kevin Woodard

BRRRR-ing is just a way to increase ROI on an investment by quickly increasing the value of a property, then freeing up that equity with a refinance. Where you execute this strategy doesn't matter as there are undervalued properties in most markets.

The tough part would be getting your team together and putting systems in place to ensure the project stays on timeline (maintaining/increasing ROI).With the access to data and ability to reach just about anyone anywhere, this is less of a factor. The last part I'm sure will be touch upon is you probably know places you've lived better than any random spot you throw a dart at. Numbers might make sense, but knowing the lay of the land will be useful at least when you're starting.

When are you looking to close? Outside of finding the capital for the deal, I have seen a handful of my clients get held up with slow title and insurance agents. 

Some resources from US News in the event someone comes across this themselves. 

• File a complaint against the appraiser. Contact the Appraisal Complaint National Hotline at 877-739-0096, or complete the form online at refermyappraisalcomplaint.asc.gov. The appropriate legal authority will receive your complaint alleging noncompliance with standards of professional practice or appraiser independence requirements. All 50 states expect appraisers to be certified or licensed and familiar with property values in their area.
• Connect with a fair housing specialist to file a discrimination complaint. You can reach a specialist at 800-669-9777, or contact your regional Office of Fair Housing and Equal Opportunity.
• Submit complaints about to the Consumer Financial Protection Bureau. Call 855-411-2372 or use the online form to describe what happened. The CFPB forwards each complaint to the appropriate company for a response and shares complaint data with state and federal agencies.

That’s absurd things like that happen, but hopefully justice prevails. 

Depending on the lender a GC with experience can have an equity position in the deal. With good credit and healthy reserves this shouldn’t be an issue. 

If you are looking to finance an non-owner occupied property it’s very doable, although the leverage will likely be reduced. 

Congrats! My partner’s parents have a house up that way! Hoping to make my way up there soon.

The money that is currently locked into a rental did you use all of your capital for a turn key property, or did you put work into it to increase equity? If it’s the latter, freeing up the capital may be extremely beneficial. If it’s the former, you can still get a good chunk of your purchase money back, ‘delayed purchase.’

For funding new deals, if money is tight. Check out Lend2Live and local REIA networks! If your first deal was a good one, fundraising through known acquaintances may prove beneficial!

Hope this helps and congrats!

After rehab is complete you refinance the property, ideally you can get a loan for 75% LTV (~71k). From the proceeds you payback the original lender. The excess funds can be used as you see fit.

Ideally rent covers most or all of your PITI. If you have any questions reach out I'll gladly walk you through the process.

Hope this helps.

A qualified intermediary.

IRS reading on QI.