All Forum Posts by: Steven Barr
Steven Barr has started 87 posts and replied 162 times.
Post: Contractor bids before or after offer?
- Atlanta, GA
- Posts 163
- Votes 57
When putting offers in on BRRRR properties, do y'all have your contractors give you a bid on the job before putting an offer in? Or do you estimate yourself and then renegotiate price during due diligence once your contractors has actually seen the property and has a much better idea of the price to rehab?
Thanks for the input!
Post: Occupied or unoccupied BRRRR houses
- Atlanta, GA
- Posts 163
- Votes 57
Quote from @Ron Brady:
For our BRRRRs, our key is the fact that the property is "distressed". Distressed could be vacant and worn down, owner passes away who's not updated the home for decades, a current owner who is a hoarder and is leaving for some reason, a foreclosure that is either occupied or unoccupied, etc. The distress means, typically, a traditional mortgage is unattainable without first buying the property and then renovating it. So, to answer your question, both.
Our only occupied home is one where we attempted to buy out the residents/squatters. After the buy out failed, we had to have them ejected through the courts. This home was one we did after we had some experience, cash reserves and connections (attorney, contractor, etc) to set us up for success. Based on our experience, if you've done a few BRRRRs, then occupied properties are ones we'd recommend you consider. If you're newer to the strategy, we'd recommend starting with vacant properties to reduce the number of things that can go wrong.
Best wishes to you!
@Ron Brady incredibly helpful response. Thank you!
Post: Occupied or unoccupied BRRRR houses
- Atlanta, GA
- Posts 163
- Votes 57
Are y’all looking for houses that are vacant (and basically unlivable)? Or houses that are currently occupied but could use some work? Or both?
If occupied… are you buying tenants out of their leases? I imagine hard money becomes very expensive if you have to ride a tenant out
Thanks for the input!
Post: 75% PP of ARV in today’s market
- Atlanta, GA
- Posts 163
- Votes 57
Hey guys! I'm new to BRRRR investing and just curious if anyone is purchasing deals for 70-75% ARV including rehab in this market?
I understand it is different in every market. Just trying to get a general idea so I can manage my expectations as I lean into this
Thanks so much!
Post: Hard Money Lenders covering 100%
- Atlanta, GA
- Posts 163
- Votes 57
Hey guys!
Are there such thing as hard money lenders that will cover 100% of purchase and 100% of rehab?
Most of everything I’m seeing is 90% of purchase and 100% of rehab. Just curious. Thanks!
Post: Needing Lenders for refinancing on rehabs
- Atlanta, GA
- Posts 163
- Votes 57
Just starting out here in the BRRRR method and could use some help from the experts
Where should I go to find lenders that will allow for refinancing immediatley once the property is rehabbed and rented out? Not looking to wait 6 months for "seasoning" period
Post: Small multifamily portfolio to large multifamily portfolio
- Atlanta, GA
- Posts 163
- Votes 57
Just starting out here and looking for veteran investor input... Trying to be forward thinking on this strategy
We are considering BRRRRing our way into a $10-20 million portfolio of 2-4 plex properties over the next few years. Maybe that's somewhere between 25 and 50 houses.
From there, we would like to sell the entire portfolio so we could perform a 1031 exchange and consolidate into an apartment complex. We will then stay in the apartment space. Or at least that is the plan for now...
Is it going to be possible to sell a portfolio of that size to an individual if the properties are spread out across an entire state? Would a hedge fund purchase? What if all the properties are in LLCs?
Post: Selling portfolio to hedge funds
- Atlanta, GA
- Posts 163
- Votes 57
Is there a minimum portfolio value to sell your 2-4 units to a hedge fund?
Also, what if all your properties are in LLCs?
Does it matter how spread out your properties are?
Thanks!!
Post: Quality Property Management Companies Outside Atlanta
- Atlanta, GA
- Posts 163
- Votes 57
Looking for quality property management companies that work around a 50ish mile radius from Atlanta. Any recommendations on which companies I should be interviewing?
Thanks!
Post: Selling a portfolio of rental properties
- Atlanta, GA
- Posts 163
- Votes 57
Question for the veterans....
If you are looking to develop and then sell a portfolio of small rental properties, say 2-4 unit houses, does it all need to be bought in the same area?
Trying to keep an exit strategy in mind. Will it matter if the 20 properties are spread out across the entire state? Or does it all need to be within a 50 mile radius?