All Forum Posts by: Logan Splinter

For all of you BRRRR calculator masters out there, I have a quick question for y'all.

When it comes to "Total Cash Needed at Purchase" I believe this is deceiving. At first I was thinking all i needed for actual cash to do the deal was that amount, but then i looked over everything again, and my question is:

This number is the number needed to just acquire the property correct? Not the amount needed of your own money for the whole project. You would need to add up 

down payment+closing costs+holding costs during rehab+loan points/fees+Interest payments per length of the rehab+any other monthly expenses (city garbage)=Total cash needed to run the deal

I'm trying to figure out what all needs to be included to calculate the total cash i need to bring to the deal in order to get it refinanced and have the tenants start paying the operating expenses. 

Thanks for clarifying for me, I am really trying to get the ball rolling here. 

-Logan Splinter

@Nicholas Covington That makes sense. I talked with my agent and informed him I have $20,000 cash to throw at a deal but I'm going to need to find funding from somewhere to help me with the rest of the deal. I thought I'd have to go the hard money lender route (and I don't even know where to start trying to search for a reliable one) but I asked my agent if he had any contacts that would be my source of funding. He mentioned the broker and that's where I got a little confused because everything I've learned is that you can't use traditional loans on BRRRR's because they don't qualify In there current condition. Any advice on where I should look for the extra capital, being this will be my first deal?

Hey BP!

I'm looking into sources to fund my BRRRR deals and the agent I'm working with referred me to a mortgage broker. You read a lot about how BRRRR deals can't be funded by banks for the condition they are in, are mortgage brokers any different?

Any advice on where to go/what to do is encouraged! 

@Corina Eufinger I am planning to use the BRRRR method. So basically flip and rent instead of flip and sell!

@Mark Safrin So you can get pre-approved. I guess my ultimate question is if my strategy is planning on brrrr-ing and most likely a conventional loan is not an option until its time to Refi..... 1. Is a hard money lender a good choice to get started. and 2. Should i get pre-approved for loans before actively searching for properties or wait until i find a property that meets my initial numbers, put in an offer with an inspection and funding contingency, and take this time to try and get approved for the loan. I have always been told that getting pre-approved for any loan is a good idea. But what if your trying to get pre-approved for a loan for something you don't know the costs of yet. It would be nice to know you have approval for funding before you spend your time seeking an investment to find out you don't qualify to fund it. 

Hey BP! Thanks in advanced for all the responses! I greatly appreciate everyone's insight and help. It is ultimately going to be a big factor whether or not i am successful or not.

I'm looking to get pre-approved for financing so i can actively start searching for my first BRRRR deal. I'm leaning towards using a hard money lender to start for i don't have enough cash to fully invest in a property, (I could cover the rehab portion if need be) and i do not have enough connections yet to start raising private capital. So i ask,

Hard Money Lenders

1. How does the pre-approval process work for hard money lenders? What do they need, what should i look into before i get pre-approved, what should i watch out for if anything, and how will this process impact ones credit score? Lets say i do not have a property i'm actively looking to buy yet, but i am looking to get pre-approved to see my budget.

Refinancing the BRRRR

1. Can you get pre-approved for the refinancing part even if you don't have a deal yet? If so, how would one go about doing this? Whether you can or can not, when should you look into completing this step of the process. 

Bare with me i am new and i have a lot to learn lol. I have never been through getting a loan like this before so i have questions! 

Does anyone have a referral to a General Contractor near Janesville, WI? I'm a Newbie looking to pull the trigger! I found a potential deal on the MLS that's only been up for 4 hours. The problem is i need to develop my team before i can move forward. I lack in the ability to determine comps and rehab costs which makes me skeptical about my analyzing. This has motivated me to work on developing connections at a rapid pace. Having to pass up a deal because i'm lacking the necessary team to seal the deal is a killer. So i'm coming to biggerpockets to ask for referrals for a GC and Real Estate Agent. This is just one more way for me to connect with people i might not get the chance to by asking around and networking in person!

Does anyone have a referral to a General Contractor near Janesville, WI? I'm a Newbie looking to pull the trigger! I found a potential deal on the MLS that's only been up for 4 hours. The problem is i need to develop my team before i can move forward. I lack in the ability to determine comps and rehab costs which makes me skeptical about my analyzing. This has motivated me to work on developing connections at a rapid pace. Having to pass up a deal because i'm lacking the necessary team to seal the deal is a killer. So i'm coming to biggerpockets to ask for referrals for a GC and Real Estate Agent. This is just one more way for me to connect with people i might not get the chance to by asking around and networking in person! 

What’s up BiggerPockets! For those of you that have a few deals or a few dozen deals. What method did you use for funding your first property? Did it go as planned? Would you of done something different?

There are many ways to fund a property, but finding how to fund your first property seems to be a challenge for many people. Hopefully this discussion will help! 

@Mike Roy I like your answer on finding hidden potential. I hear @Brandon Turner say that exact thing time and time again on the BP podcast. But where would you be looking for deals with hidden potential. The MLS, word of mouth, knocking on doors.... all the above? As someone looking to take the leap into real estate with no experience, what would in your opinion be the best way to find that deal to get the ball rolling? What has worked best for you!? Thanks for your answer!