All Forum Posts by: Maricruz Romero

@Vaughn Smith can you please confirm the address and time for tomorrow?

Hi BP!

I am looking into a deal for which the ARV is less than $100k, I am estimating $55k to $65k based on MLS comps. I am looking to implement the BRRR strategy so buy it cash and refinance once its rehabbed and rented. Has anyone refinanced a property that appraised under 100k? How difficult was it to get a loan of this amount and what lenders should I approach to confirm they would lend on this property?

Thanks!

@Justin Sullivan thanks again for your input, its always helpful to know how others work.

@Andrew Postell thank you for the great overview, that was really helpful!

Hi BP!

I am in the process of buying my first property in Delaware County PA through the BRRR strategy. I would like to buy it under an LLC which I know is fine but I contacted Citi Bank to ask about a refinance portion and they mentioned they wouldn't refinance if the property is under an LLC. Does this mean I have to refinance with an unconventional lender and do they offer higher interest rates than Citi bank would? Where can I find lenders that would lend for a property owned in an LLC?

Another option would be to buy under my name and then transfer it to an LLC but that would mean incurring double transfer taxes and fees (at the time of the original purchase and then when transferring to an LLC) in order to refinance with a conventional bank like Citi, is this expense worth it?

Additionally, I do have a good credit score (750+) but if I borrow using the LLC would an unconventional look at my personal credit score when determining the interest?

Thanks in advance for looking into my questions!

@John Oh thanks! This is really useful info, thank you for sharing

@Justin Sullivan thank you! I appreciate the thorough advice. 

Follow-up question for you? Do you recommend I put the property I am interested in under before I ask the contractor to walk through the property? As a someone who is just starting how do you recommend I get comfortable with the estimated rehab costs that I need to get it into contract. I am currently looking into a property from a wholesaler they said repairs would be $20,000 - I am using a more conservative number of $30,000 (the property seems to be in generally good condition). I would like to get under contract but this requires a $2,000 deposit. If I get under contract and the contractor comes up with a $40,000+ estimate my numbers wouldn't work as well so I'd like to get into contact with someone before getting into contract so I don't lose $2k. I don't want to waste anyone's time as I know that if a contractor comes to see the property they are looking for a serious client but is there any other way I can get comfortable with rehab costs without having the contractor walk the property?

@Marc Izquierdo thanks for the advice. Follow-up question for you? Do you typically get your properties under contract before having the contractor walk through the property? As a someone who is just starting how do you recommend I get comfortable with the estimated rehab costs that I need to get it into contract. I am currently looking into a property from a wholesaler they said repairs would be $20,000 - I am using a more conservative number of $30,000 (the property seems to be in generally good condition). I would like to get under contract but this requires a $2,000 deposit. If I get under contract and the contractor comes up with a $40,000+ estimate my numbers wouldn't work as well so I'd like to get into contact with someone before getting into contract so I don't lose $2k. Of course I don't want to waste anyone's time but is there any other way I can verify me rehab costs without having the contractor walk the property? 

@Kevin Grove thanks! I remember her episode I have to revisit that one.

@Adriane Allard thank you for contacting Justin! I appreciate the support, it's what makes this community so great. Good luck on your investment ventures :)