All Forum Posts by: Rusty Haake

Thanks for responding! My inclination to this strategy is that it will allow recoup of the seed capital in short order. I could perform this strategy multiple times in a year (it's basically a watered-down BRRR with partners instead of a hard money lender).

Using the $120k to seed a $480k finance is an appealing option, but would leave me without capital to perform another iteration for quite some time. I also have to chalk up my own humility about my experience level - I’m frankly nervous as hell about all of this, and multiple practice reps feels more conservative in this sense.

I’m all ears though, and open to alternative ideas and strategies! 

Hi Team!  I'm a homeowner with a steady job.  I'm trying to get into this real estate hustle. 

I've identified several properties in South Dallas (Gentrifying, 75211 if you're curious) that look like winners.  3b/2ba for $250k ish. 

I'd like to get a purse together to make a cash offer.  I suspect many of these homes would go for $220k in the presence of a cash offer. 

I can cover $120k with my savings.  I'd like to bring in 2 partners to help with the rest. I'm trying to find precedent for this kind of arrangement. My first stab looks like:

Partners wires me $50k.  I buy the house.  I improve it - these aren't full rehabs because I'm still new, but I can add value through clever landscaping (I'm great at that), new paint, new siding... easy stuff. Bank re-appraises at $250k. Refinance 80% out through my mortgage guy.  Pay back the partners, keep what's left. I get tenants installed.  I suspect I can have the house turned around and renters in there in 3 months or less. 

Is it a realistic to offer the partners a 10% return in 3 months?  They give m $50k, I go into hustle mode, I give them back $55k? I believe a hard money lender interest-only loan is the closest functional equivalent to this, and their interest-only loans are much different.

All guidance is welcome.  Thanks team!

Hi - I'm in Oak Cliff and I want to deploy my funds to buy and hold. I found and subscribed to the DFW REI Club. Any more like that?