All Forum Posts by: Ryan Copeland

@Natalie Schanne what if we have not agreed on a price?

@Christine Kankowski, @Steve Vaughan and @Account Closed that what I need is a Letter of Intent.  I will begin putting that together.  

@Jennifer Lee how many deals have you done now?  This post was 8 years ago, so I'm interested to see how you've done.

Scott, if I outline the price in the LOI, does that price meant that is the price I am seeking to purchase the property for?

@Braden C. What's the website? 🙂

@Kerry Noble Jr they asked for an offer letter. I'm not sure if they know what they're asking for.

Hello BP,

I've been talking with an owner for an off-market deal and they asked me to send an offer letter.  I was wondering does anyone have some type of template to use or can provide some type of example.  Any type of guidance would be appreciated.

Thanks!

Anyone else have an example of an Offer Letter for an off market deal?

Hi @Noe Arreola,

The BRRRR strategy can be applied to both single-family and multi-family. You typically see greater cash-flow from the multi-family because of volume.

From what I've learned through reading, podcasts and other investors is this:

• Multi-Family:  Great cash flow, more doors for 1 purchase, faster path to achieving wealth
• Single-Family:  Won't cash flow as much as MF, not as easy to scale up as MF.  SF does have better exit strategies.  If it's a rental, you can sell a home faster than a MF unit.  Only investors are looking for MF, so the sell process could be longer.

That's about all I have time to type as my baby girl is getting restless :-).

I'm not understanding what you mean by low cash flow with BRRRR. If I buy a property for 100k all cash, put 30k into it, it appraises for 170k. I then do a cash-out refi at 75% LTV, which means that I would get a mortgage at 127.5k. Thus only leaving $2500 invested. And let's say I got a 3.5% interest rate on the loan.

With your HELOC, you basically did the same thing. I bought all cash, did any rehab, got it appraised and then did a HELOC. Based on your post, I think the rate was like 4.5%.

So how is a BRRRR in this scenario going to cash flow less?