All Forum Posts by: Andrew Syrios

If at all possible you want to have some cash in the bank for a rainy day, like say if all your tenants left. But the key with the BRRRR method is you get into ownership of a piece of property with no money or little money down, but you still have a sizeable equity cushion. If things go wrong, you can always sell and make a profit and even if the market takes a big hit, you should still have some equity.

Then, over time the property appreciates and your principal gets paid down, all the while you should be making a positive cash flow from the rents. As you accumulate more properties and get more appreciation, principal paydown and cash flow it becomes exponential. It's a get-rich-slow technique, but it works very, very well.

It's really hard to say without knowing the market. That kind of rent increase would certainly increase the value. Do you know what cap rates are about near you for similar properties? And do you know what about you NOI will be? That would help a lot in coming to a value.

Welcome to BiggerPockets Robert and good luck investing my fellow Kansas Cityian!

Welcome to BiggerPockets Seth!

I liked Emerging Real Estate Markets by Dave Lindahl (his books are a better deal than his seminars, IMO), although that focuses on apartments.

Geez, that is unbelievable! I think I'm going to start calling to confirm wire instructions from now on.

Welcome to BiggerPockets Matt and best of luck investing!

Welcome to BiggerPockets Saqib and good luck investing!

Hard money lenders are professional lenders who usually have pretty high rates (12-15%, 3-5 points). Private lenders usually refers to private individuals who have money to lend. Rates vary but are usually much lower (we usually get from 8-9% with no points).

You want to have built the relationship beforehand, but usually you don't bring a deal to either until it's under contract. Perhaps, if you feel it's a bit questionable or you haven't talked to the lender in a while, you might feel them out while you're still negotiating the deal to gauge their interest.

Owner financing is simply another way to close a deal and provides the financing for it so you don't have to worry about any lenders (unless you want a second). Usually, the most important thing is to prove to them you're a trustworthy and strong borrower so they don't have to worry about default. But of course the terms are important too.

Free is often a very enticing price. We do this kind of thing with appliances all the time by having scrappers come take the old junky appliances for free. It's definitely a good way to go.