All Forum Posts by: Matt Munn

Hi Bigger Pockets Family,

I'm looking to make the transition from my current accountant to one who works primarily with real estate investors in Delaware. Before searching all over the interwebs, I thought it might be a good idea to see if anyone in the Bigger Pockets' community might have a good referral for me.  Again, I'm based in Delaware (New Castle County), and would love to connect with a great local CPA/Tax Professional as I move forward with my fledgling real estate investing business :)

Thank you in advance!

Matt

Yeah, the BRRRR strategy is the way to go. An often overlooked benefit to the strategy is that it sort of forces you to only buy good deals. You need to buy properties with a lot of equity as @Greg B. I'll try to explain with round numbers...

Say you find an ugly house in a nice neighborhood.  Cost of the ugly house is $100k and the rehab estimate is $30k.  You negotiate and get it for $80k (now you have $20k in equity). Market value of similar homes in that neighborhood is $200k based on comps. You buy the ugly house with 20% down...

...
Down Payment = $16K

Rehab = $30k

Closing Costs = $10K

Holding Costs (before its fixed and rented) = $4k
...
Total Cash out of your bank account = $60K (assuming you pay for the rehab out of pocket. You can get rehab loans to avoid that but anyway...)

After the rehab is complete, the house is worth $200k (after repair value or ARV). You can now REFINANCE 75% of the ARV. So now you have a $150k mortgage. Part of that refi pays off the original $80k mortgage, and the remaining $70k ($150k - $80k) goes back into your bank account so you can do it all over again.

BRRRR

Right in time for tax season! Thanks BP :) Can't wait to read this bad boy. 

Hello fellow Delaware Investors!  I love the idea of forming a meet up group where we can help each other thrive in this industry. It'll be nice to discuss opportunities in DE, as well as swap referrals for agents, contractors, lawyers, accountants, etc.  I have one rental in Wilmington, and would love to buy another soon. @Jeffrey Giffin please add my name to that list :)

Hi BP! 

I'm looking to educate myself on the ins and outs of different types of Real Estate Contracts so that I can structure better deals. I'd like to study everything from standard property purchase agreements, to lease/option contracts, seller financing, wraps, sub2, deeds, notes, etc.  

Just thought I'd check to see if any of you had any recommendations before I jumped on Amazon.com and bought whatever seemed to have the most/best reviews.

Thanks in advace!

Matt

Thank you @Paul Giloand @JD Martin.  That advice makes a lot of sense.  I'll stay away from the crude formulas, and focus on the actual numbers on a case by case basis.

Thanks again!

Thanks Nate. That's great advice! I appreciate the response. 

Hi BP! This is my first post, and I'm really excited to get some feedback from some more experienced investors here. My question is as follows...when considering the purchase of a fixer-upper property to fix, hold, and rent, what would be a wise max offer price in order for it to be a "deal". 

I was thinking of using the basic formula of 70% of the market value (based on comps) minus the estimated repairs.  Is that too extreme? Would 85% or 90% of the market value minus repairs work as well considering my intention is to hold and not to flip? Or would that be foolish?

Thanks!

Matt