All Forum Posts by: Ryan Blake

@Andrew Coulton Have you already reached out to Aspire Realty and @Sherry Patterson? They are amazing, have great rates, and are very responsive.

@Tomiko Graves Just know there is a reason many companies do that. It is because there is a very high failure rate among long distance flippers. Just make sure you have multiple people in the area of your flip you trust. I would have an agent who you plan to list with, your GC who will be sending you daily or every other day updates with pictures, and a local investor or some other person who can check in on the project other than your agent. You want these people keeping each other honest. It will be your best chance of success. You should also visit the site at the 50% completion mark, 90% mark, and a final walk through after everything is done before you release the last funds. I know it can be expensive getting out there those three times but it could save you thousands in the long run.

@Daniel Mendez Just find a HML that doesn't require 20% down. I know tons of people that BRRRR-ed by doing 5% down on an HML loan with an LTV of 75%. Then they just did a rate and term refi and left the equivalent of 10% in the property. You have to do the math and make sure it is a good property but you should be doing that as soon as you look at any prospects. Use the calculators here on BP. That have one just for BRRRR.

@Austin Durham It looks like you are in Arkansas based on looking through your posts. Location matters. Most lenders are not 100% nationwide and many will only lend in major metro areas. I think it is best to always go local. Find out who is in your area by going to the state listing of HMLs here on bigger pockets. Then start calling. If you are in Little Rock or another larger area you should expect to be at 70% LTV with 3 points and around 13% interest and probably 85 - 90% initial funding. You might be able to find more on the initial funding if you search but it also may come with some higher fees.

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@Alissa Warren Just know that all FHA loans are for owner occupied properties. You would need to move in, or show serious intent to move in, after the rehab is complete. It is a good option if you are going to house hack by living in one unit and renting others out. You can also only have one FHA loan at a time. You would need to refinance to move on to another property. There are some lenders that will lend on cashflow but charge higher interest rates on the long term note. I am not sure if the FHA program would become suspicious if you were trying to get a new one every year or two.

@Jay Hinrichs Morris Invest is still ripping people off. I am pretty sure they are still tossing out their "program" and "turnkey" rentals to uneducated buyers. I feel so bad for the investors that are getting burned left and right from them.

@David Wandel Good point. With conventional loans you are going to need to put up 20% or 25% of purchase and then maybe roll in the repairs or come out of pocket. Hard money you are getting either 100% of purchase and 100% of repairs covered or 90 - 85% of purchase and 100% of repairs. Very low out of pocket before you refi so you end up with little cash in the deal. Yeah it costs more and so you as an individual investor needs to weight out what is best for your cash position.

@Will Kirkendoll If they can't keep your paperwork straight while getting prequalified, I wouldn't expect them to do well at closing either. Just move on. I hear they have a high turnover rate and that may have come in to play but there should be a better way to track documents received. In the end, always use a lender you feel comfortable with. Some obviously on this thread are very comfortable with them. Doesn't mean that you have to be. Good luck in your search for HM.

@Bill Plymouth I am a hard money lender and 55% of my loans are buy and holds. They use it too BRRRR the property. You buy a property in distress and not capable of qualifying for conventional financing or for a property that is from a wholesaler and needs to close quick. Then after the repairs are made (typically 2-3 months), refinance and pull out the newly added equity leaving no or minimal cash in the deal. Rent it out and repeat the process. It is what @Brandon Turner always talks about on the bigger pockets podcast. It is tough in Dallas/Fort Worth to find a deal that leaves you with no money left in the property but I regularly am having investors end up with a duplex worth $200k and have less than $15k invested in it with no PMI because they have enough equity that they are only financing 75% LTV.

There are tons of great articles on BP about how to use the BRRRR process and success stories.

Hope this helps.