All Forum Posts by: Mike Dorneman

@Chester Straley that’s awesome!! Would you mind sharing the offers?

@Steven Ko it’s not lazy man, it’s progress! Just get that first dealnunder your belt. It eliminates the nerves!

@Kelly I. Trying to! For me though the key is a great lender and skilled inspector to keep me buying right.

@Al Norman I use listsource.com to get updated list of properties not occupied by owner. (Rentals). But most of my properties if found be driving around. I drive a neighborhood and send letters offering to buy to the 100 or so worse looking houses.

@Emma Nunez Probably like most, depends on where exactly. I’m very happy with conditions in my little area (about 2 hours north of Philadelphia). But I’d say deals are everywhere, you’ve just got to find them. Unfortunately in most cases, you won’t find them on the MLS.

@Julia Gray I did my first deal and froze for about 4 months. 😁 Then I learned about BRRR, got my Money back and started the process. The girls know that the worse the smell, the more money we make!!! For example, we bought a nasty house with bed bugs for 11k. Had it professional treated and cleaned. Did some Minor cosmetic updates and that now rents for $850/mo. We put 4K into the Reno. So all in about around 15k, great cash flow, and refied it at 41k.

@Luis Sosa sure Luis. I included some details in my response to Courtney.

@Courtney M. Fairly close to your market. On average we are able to purchase around 30k (direct purchase from seller). Now typically when I go to look, the price starts around 50-60k, however once I walk through, build some rapport with the seller and show them some comps we drop down to a more realistic number. I then schedule my inspector and after his walk through, we renegotiate if needed, and sign the deal on the spot. I like to be all in (post renovation) around 40k. These will then usuuatypically appraise for around 65k. So back to BRRR. I’m all in at 40k, bank appraised it now at 65k (commercial appraisal taking rental income in to consideration). Bank loans on 80% ARV (after renovation value). I cashout at 52k. I recoup my original 40 so I can do it again, make a quick 12k, and now have a loan for about $370/month. The house rents for $875/month, so after expenses (including $150/mo cap ex), I also cash flow about $150/month.

@Courtney M. I’ve got 3 young daughters and I try to involve them as much as I can in our real estate business. Here’s why I’m telling you this. When I go to view properties I often bring the kids. They’ve gotten to the point that when we walk into a perspective property and It’s disgusting and stinks, I asl them what they think. Their response, “Smells like money Dad!!” So, I’ve found success with making cash offers on homes that primarily require cosmetic fixes. I’m buying these anywhere from 20-50% below market value. We renovate, rent and refi our cash back out usually within 6 weeks. Find the next property, and do it all over again. We started about 1.5 years ago and we’re (my wife and I) currently working on #11. Let me know if you have any questions regarding the specifics of BRRRing Best of luck!!

@Steven Ko Junp right in Steven, you can do this! Dig in with previous BP pod cast to learn some lingo and begin your education. Identify your price point, obtain a pre approval from a lender, then connect with an agent who understands your an investor and NOT looking for a house to into to, but instead turn into an asset.