All Forum Posts by: Rickard Risberg

@Greg Dickerson Thanks!

@Greg Dickerson EDIT : Can't you basically refinance as often as you want (as long as you have a new property that is fixed up)

@Greg Dickerson Thanks!

You wrote "unless you refinance it every few years" but can't you refinance a property as soon as you have fixed it up and it's gone thru an appraisal?

Regards

Sorry for the weirdly structured paragraphs....

Hey guys, I recently listened to the newest podcast (327) on BRRRR investing and I realized that there's one thing that I don't understand.

Let's say you buy a 50k house.

The house is trashed and you have to spend 30k fixin it up.

This makes your total investment 80k.

The house has now appriciated in value (thru forced appriciation) and is now worth 120k.

You then find tenants (a family) and they are now renting it out for 1k a month.

After this you go to the bank and refinance the house that is now worth 120k so you get a loan 75% of its value which is 90k.

Now you get all of your capital back + 10k more, but the thing that I can't really understand is that THIS 90k is a LOAN and you have to pay interest on it right? So now this loan interest has to be paid off every month and eventually the loan itself has to be paid off. Do you then remove the loan payments from the rent which is 1k?

Or do you simply find a new house worth perhaps 50k and rehab it for 30k, refinance?

If I'm understanding this method correctly you basically have to keep investing otherwise you're going to be stuck with a loan at 75% of the house for 30 years?

Sorry if this is unclear but I hope that someone can understand and make sense of my question.

Thanks in advance!

Rickard

@Chris K.

Hey Chris!

Thanks Amit for your advice, just finished reading the article and I must say that his view is quite different but interesting.

He does bring up some good points and it is definitely something that I will keep in mind when starting my business.

Thanks!

@Benjamin Piecenski Sounds like a plan!

I'll look for networking events and hopefully find someone. By the way, should I dress formally?

This summer I'll be working for three weeks earning up some money and I'll try to (I will) put them away on a high yield savings account as you said!

I completely agree with your views on college, it may be useful for some but not for others. Some people feel satisfied with having a 9-5 job and getting paid for their time however I do not believe that I would feel satisfied in those conditions.

I want to earn money myself and I don't want to get paid by someone else in exchange for my time.

Thanks alot for your response I really appreciate it!

Rickard

@Derek Carroll That's a good idea, however I do not believe my parents will be willing to do that, they are too skeptical and think that I should just wait until I turn 18, which of course is a understandable opinion by all means but I'd like to gain experience.

Thanks for your response!

@Jeff Ronningen Great advice! But I'm not sure how to find other investors... Most of the people here on BP are situated in the US, I'm however in Belgium.... I've already tried looking for networking events but I'm not quite sure what to do there. I'm going to keep looking, and ill work on my handyman skills (;.

Hey guys and gals,

I'm a 16 year old that is very interested in real estate and investing in general.

As I just mentioned, I'm a teenager and therefore I do not have the capital or entitlements that as "adults" have.

My question is therefore;

Is there any way to slowly get into real estate and start doing practical stuff?

I've considered REITs but as far as im aware, you need quite some capital that aswell?

I was thinking that I could find someone that I find potential properties for, they then invest in it give me a small share (I could do it for free aswell I just want to learn) and get updated on how the investment is doing. Another thing that would be cool would is if there would be any way of somehow borrowing money under the age of 18.

Thanks in advance for your responses!

Rickard