All Forum Posts by: Madison Heck

@Charles Biederman

Hey Charles!

I’m a relatively new investor in the area as well, closing on my first property soon.

Let me know if you want to connect. I'm targeting properties to employ the BRRRR strategy.

Hey there! @Hollis Malkowski and I had an offer accepted and an inspection finished on a multi-family in Ithaca, NY that we got for $225k.

We are looking to follow the BRRRR strategy and add some value to the property with fixes and cosmetic changes to the inside, developing a driveway, and possibly inserting a unit in the unfinished basement.

Does anyone have tips on where we should look to get or how we can go about getting a construction loan for all of this? And what we will need to bring (business plan, credentials, etc.) to help us secure the loan.

Any advice is helpful, thanks!

@Raymond J. Rodrigues darn I was hoping for otherwise!

Thank you for the info :)

Hey all,

My business partner and I put down our first offer on a property! It is a 2 unit, 5 bed 3 bath.

The lender I was working with told me that we will need to put 25% down rather than 20% since it is a multi-unit property and not a single family.

Should I shop around with other lenders to see if they will allow me a lower down payment for a comparable rate?

This is probably the bottom of the totem pole as far as creative financing goes, but wanted to ask in this forum anyway.

Thanks!

@Philip Davidowsky The first one you sent is actually one that I have been sizing up extensively, but it looks like an almost entirely new house will need to be built, you're right.

The second is a beautiful home! A bit out of our price range, but looks totally turnkey.

Thanks!

@Philip Davidowsky Thank you for the perspective! We were planning on managing the property ourselves since it will be our only door and property management companies generally will not be looking out for your best interests unless you forge a great relationship (at least I have heard).

We have some connections in the area having gone to school there and will be taking advantage of their recommendations for plumbers, handymen, etc.

The towns on the outskirts of the area have recently been looking a lot more appealing to me. There are some gems I believe that need some work and can have a significantly boosted ARV after some repair.

@Stephanie Jacobson I'll message you so we can chat more about this!

My business partner and I are looking to complete our first deal in Ithaca, NY. We have about $50k in capital to spend and any costs that surpass that we would look for a hard money loan.

The properties that we are seeing fall into two categories generally - fixer uppers that are priced at around 70-100k and more turnkey properties that are priced in the low to mid 200k region.

We want to follow the BRRRR strategy, which would most likely push us to the larger rehab properties, but are not sure if a large rehab is the right move for two beginners in the real estate investment game.

What are your thoughts?

@James Perdomo The floating rate is what scares me, especially right now/in a few months. I feel like I will want to lock in a rate with the outlandishly low rates right now that I imagine will slide down a bit as well. The refinance would do this for the forseeable future.

I see the draws of the HELOC though, this will be a difficult decision!

Thanks :)

@Samuel Reznikoff That's great! Sounds like you're in an awesome position.

In my case, the more capital to take and put down on other properties, the better. We will need to pay off our rehab on the initial property as well, but I'm not sure if cash or credit would be better for that.