All Forum Posts by: Nathan Harden

Yes. This is exactly what you do. You can find more info on it all around, known as "BRRRR" strategy. The point of the BRRRR is to pay off your HML/PML and HOPEFULLY get a little extra in your pocket your next purchase.

 Mail gets expensive. Quick. You are eventually going to need to hop on the phone. Say you get a house from your mailers, you will then be under contract and majority of conversations will be over the phone. Remember, wholesaling doesn't have the greatest % of closings, so if you think cold calling isn't your thing. Wait until you have to have a conversation with the homeowner that is already partially moved out and you have to tell them that the deal is off. 

And just FYI. Cold calling is a dog eat dog world. If you're not making those phone calls to the homeowner, another wholesaler is. 

In order to have something you never had, you must do something that you've never done.

Don't try and stretch yourself too thin. 4 flips is solid. Wholesaling is a completely different animal. Putting the work into your flips while also trying to market, advertise, close wholesale deals is a lot of work.

There comes a point in time where you have to know what your time is worth. Is it worth it to you to just pay a wholesaler their 10-$20k fee or do you want to spend months trying to learn something and focusing your time and effort into a new skillset while neglecting something you have proven experience in? Flipping. 

I'm with you. If i can save a dollar, I will. But at what cost? How much time is worth that extra $10k in your pocket?

KEEEEEP.

Will it cash flow as a LTR? Look into a HELOC on that property if you want more capital but don't want to refi.

Here's the thing. What are you going to do with that extra $50k?      Invest it.

What if you refinanced before the end of the year (Hopefully rates get down to the mid 5s). Take a hit on the monthly payment, but you make up for the extra monthly payment by self managing to save yourself that management fee. 

This could be the best of both worlds. Yes you have a higher mortgage payment. But you helped offset the majority of the cashflow difference by firing your manager and self managing. THEN you're cooking with peanut oil.

You will have one stable cashflowing property and capital for your next investment.

Whatever the climate decides to do over the next 100 years does not in any way shape or form decide how I am going to run my business today. Unless you're telling me that Anchorage Alaska is going to be the new San Diego within the next few years... hahah JK.

"Control what you can control"

Honestly, do it. 

It is so nice to just be able to get up and go see a property whenever you want, not when your agents schedule allows. This also allows for you to receive commission on the buyside as well as save you commission when you decide to re-list because you are the listing agent and you will not be paying yourself, so you'll end up saving 2.5-3%. 

By getting you license for a fix and flip for example. You will make 2.5% on the buy then save 2.5% on the list. No brainer.

YEP!

Similar situation happened to me on a out of state buy and hold. Bought it for $28k. Plan was a $30k rehab, be all in for less than $60k with and ARV of $80k.

1 year later. I am ALL into the property for $94k. Just got my DSCR cash out refi from it. Came in at a value of $78k so my new total loan amount is $53,300.

In other words, I am way upside down, but that is part of the risk of investing. Now, I will just Hold that property forever. lol

Instead of writing an elaborate response. Lets just keep it Simple. 

1031 exchange

Okay, this sucks. But as much as this sucks, things could have been A LOT worse. Glad it was caught sooner rather than later.

 $30k?! There are so many other ways to get you where you are trying to go without spending $30k. Just signing up for a "guru" isn't going to change your life. They give you the tools to be successful. No different than meetups, youtube, networking, etc. 

Actually, I lied. I guess there is a difference. The things that I mentioned don't cost $30k.

Honestly. Truly, honestly ask yourself. "Am I at the point in my career that I need to spend $30k for a coach?"

What is that coaching going to do for you that you couldn't get somewhere that is cheaper OR free?