All Forum Posts by: Pete Storseth

@Stanley Ezeadi

Maybe I should get my realtors license and work part time, 2 to 3 sales this year would boost my income

Imagine you have a townhouse that's cash flowing well in your favorite city to visit, and you've had a role in designing it to cater to tourists. For instance, if I had one in California near Disneyland, it would definitely make money.

I envision a 4 to 5 bedroom with two master suites and 2 or 3 beds for the kids. When my fellow investors and I wanna vacation together, we already have a place to stay that we love to visit anyways.

@Andrew Postell

That's true. But of you're selling and using the profits to reinvest, the appreciation and depreciation will come eventually.

My goal is to get to the point where there's enough income to invest in centrally located townhomes in Houston and Austin, rent out 1 or more units to tenants and AirBnB 1 as well. This would play both parts, as well as provide a sort of vacation home for the cities I acquire the in.

The BRRRR, with the wraps would just be means to that end.

@V Craig

What's your end goal?

I want to pick one of three ways to get into buy and hold, seller finance, and fulfill my big picture goals.

My niche will be BRRRR with the intent of finding tenants open to buying via owner finance at some point, in order to get out if full time landlording multiple properties, but still have cash flow.

Option 1, pay for coaching to get properly trained on finding off market deals subject to and seller financing. Regardless of whether anyone agrees with paying a coach, these are strategies that require alot of support.

Option 2, get my realtors license and use the first 2 commissions to finance my deals, use the MLS to find seller finance deals along the way. This is a more traditional education, but along with the research and development I've had recently in creative real estate, it could he best of both worlds.

Option 3, niche down to a specific marketing strategy and find a partner. This one will have a timeline. It's a less structured approach, with more uncertainty and less support. It's also the option with the least clarity to my goal. However, it's the least expensive choice.

@Tim Bradley

That's the best concise answer to what BRRRR is I've seen

@Roberto Lopez

Are the rents for that area really only 1000?

@Kenneth Garrett

I see, so even for the offers, run the numbers. In negotiations, finding a max offer is one thing, but you should also think creatively too right? Should you start as low as you can, as long as it's still a win win? Or is there a question that you ask to find out their bottom line first?

@James Gleeson

Since no one else joined in, I have a creative idea

Buy seller finance, but their asking price is after interest.

Rehab minor cosmetic, using private money for down payment and rehab.

Rent at new appraised rate

Refinance, if cash out is an option

Refinance cashes out original seller too.

Use cash out to pay lender back

Find a tenant/buyer willing to pay mortgage = current rents, and willing to put 10% down on new appraised value.

Seller finance at higher interest (wrap)

Collect cash flow, no landlording responsibilities, add the leftover cash out to the buyers down payment = new investment and repeat.

Too complicated?

@Ryan Evans

Was thinking about partners.

My next step is smaller banks, credit unions. If that still wont work, I'll have to be creative. Even if I buy seller finance with private money for down payment and rehab, rent at refi rates, do a cash out, pay back my lender, then try to seller finance to a new buyer for higher rate (wrap it) and add the leftover cash out to the down payment collected from the new buyer to invest in the next one.

BRRWR (BuyRehabRentRefiWrapRepeat)