All Forum Posts by: Melissa Palmer

Yeah I think a HML like @Logan Singleton mentioned would be a good move to call around or connect with a loan officer like him perhaps to see who would fund those type of numbers, but if you wanted to explore private money there's 100 ways to structure the deal. Consider your goals and the PMLs goals primarily. Brining someone in for that 10% gap is likely better as a partnership or equity split as there's not a lot of security in lending on a 100% leveraged fixer. 

There's not really enough information to understand exactly what you're working toward, but here are a few examples of how you could structure a BRRR with a private lender.

It could be an equity split with preferrential payment/buyout, a simple interest monthly payment until refinance, a long term partnership or a hybrid of some of these. 

Hey Fam! I heard about bigger pockets from a military colleague while I was in the middle of house-hacking before I knew there was a name for it. I've dabbled in traditional real estate since 2009 and investor RE loan products as well as conduct due diligence for private lenders leveraging their cash. I love real estate, love leverage, and enjoy learning and helping others. 

 Thanks! Yes I've had this for two years now and have consistently been a superhost. Some guests make it hard to maintain.... lol. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $280,000
Cash invested: $34,000

Cutie AirBnB STR cabin

What made you interested in investing in this type of deal?

Wanted an investment I could also enjoy, unlike my LTRs.

How did you find this deal and how did you negotiate it?

Cash deal - not much negotiation in the times of multiple over-asking prices during COVID.

How did you finance this deal?

Cash

How did you add value to the deal?

Reno'd the kitchen and changed bathroom fixtures

What was the outcome?

Sweet lil cabin that I get to enjoy.

Lessons learned? Challenges?

I was Dave Ramsey mindset focused on owning my place outright failing to understand cash buyers shouldn't be competing on the MLS with regular loans. I could have leveraged that cash differently, but we all have our mountain to climb.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $799,000
Cash invested: $30,000
Sale price: $1,060,000

Fix and hold, rent, and sell.

What made you interested in investing in this type of deal?

VA loan opportunity to get into the market

How did you find this deal and how did you negotiate it?

New build, another veteran selling it

How did you finance this deal?

VA loan

How did you add value to the deal?

Added an "ohana" unit ADU equivalent

What was the outcome?

Rented out the upper and lower level separately for a few years before selling it

Lessons learned? Challenges?

Got into a dispute with the developer as the foundation was missing a vapor barrier. All the first floor flooring was up two months after the new build and after mediation won and had the developer put in french drains, epoxy remediation for the slab, and new flooring/mold remediation, etc.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Shari Hooks was an absolute dream professional agent throughout the experience and ended up selling the property for me later as well.

Worth it for the 1) network/community and 2) nonstop course additions. It's not just about creative finance, there's business, personal development, and skills training galore.