All Forum Posts by: Stephen Glover

@Account Closed has the right idea, however with one small edit. They will help tremendously, but they will not do all the work for you. You have to be willing to put in the effort to help your team and they will do their part as well. It's critical to find a good property manager, RE agent, and General Contractor for a BRRRR. You might be able to find one rockstar and have them introduce you to the rest. However if any investor wants those professionals to do all the work for them I don't think you'll get very far with introductions. If you get to the point of doing many transactions at a high frequency with the same team then things might be a little different. Developing relationships in your desired market is the way to start, in my opinion.

@Mike D'Arrigo I didn't challenge them on anything specific, just submitted my complete and thorough analysis and let them do what they wanted with it. I knew many points where they were missing the mark, but I didn't call them out on specific areas. Wanted to tread as lightly as possible. I think once they saw the renovation list to include many thousands of dollars in CapEx they understood they didn't have enough information before the original valuation, so they quickly agreed to revaluate. The list of information I provided is in this thread on page 1 if that helps.

@Justin Dyer what neighborhood were you looking in?  Definitely reach out next time you come back.  Build in time to grab coffee and we can review neighborhoods, rents, tenant demographics, etc.  I can make some local connections if you need those as well.

@Minnae Chabwera @Maurice J. @Tyrone Harris

Thank you!  Appreciate the support.

@Andresa Guidelli Thank you for dropping into this post!  I contribute the $24K savings to your BP podcast episode.

@Kelly Pierce  I didn't want to go into much detail in the original post on that, but I have a great network of folks in RE in Richmond.  Out of the few people I called, 2 very experienced investors answered and just didn't have experience contesting an appraisal and said I could go to a different bank, or make it up on the next deal. After remembering podcast #314, I put together all my data and was in touch with the bank within a few hours.  Over the next week, I got a couple of return calls from realtor friends eager to help me contest it but it was already underway.  I move quick, so I would have ate the loss or moved to another bank by then.  Luckily I didn't do either!

@Amy H. DM me, I'll connect you.  I know a few good ones (there are many) but I particularly like this bank's product.

@Jay Hinrichs My private money used to require me to get a pre-approval based on the projected ARV from 2 different banks that I would consider for the refi before lending the money for the purchase. It wasn't set in stone from the banks, and the buyer could always fudge up their finances between the purchase and the refi, but that was probably as good as it gets. It proved I was bankable based on the ARV, and that I had the relationships in place.

Seems like if anyone could create the systems for it, it would be you.

@Theresa Harris Something is off on your calculation.

80% of $105K is $84,000.  I owed my private money lender $108,000. 

$108,000-$84,000= $24,000.  I would have spent $24,000 to pay my private lender, losing $24,000 on the opportunity where I thought I would break even.  

After the revaluation at $145,000 I am pulling out $116,000.  So after paying my private lender, I'll be on top $8,000 (before taxes, etc etc).

@Mike Celli Sandston, plenty of opportunity in other neighborhoods around Richmond as well. Not on the MLS, but through relationships mostly. Just put an offer on 5 more homes 2 days ago with the same plan in mind. They are mostly located in the Southside. If you visit RVA let me know and we can grab coffee. If you need good connections in Richmond I can try to help with that as well.