All Forum Posts by: Tucker Cummings

The truth is that real estate is mega hot right now and none of these lenders, agents, contractors or PMs are begging for new clients. They have plenty of clients already doing deals and are ready to go.

I would just focus on getting 1 piece of the puzzle first. Go in a local FB real estate group and ask for recommendations for an agent. Your agent is going to tell you to get preapproved and will likely have some lender recommendations. They’ll hook you up to start getting deals fed to you. Then when you actually have a deal, look for your contractor and your PM.

Also, to reiterate what someone else said, you made calls for one day. How many calls did you make? If you’re beating yourself up for one bad day, your first day, in RE, then this is not going to be the investment vehicle for you.

Another option is to start looking for an apartment building to buy. Once identified, sell your house and 1031 exchange into the apartment

@Travis Biziorek I see, missed that part of the thread. Thanks!

Have you considered selling as a 1031 into a cash flowing property where you’re moving?

I can agree to an extent that the BRRRR strategy seems overblown. I think that:

1) It's setting an expectation that you should aim to get all your money back. This just isn't realistic to expect on every deal. Expect to leave anywhere from 5-10% in the deal. If you're leaving 20% in the deal, might as well just buy off the MLS, since it's way less of a headache.

2) Most BRRRR property shouldn't be a massive rehab. Aim for your cosmetic fixes and small functional repairs. But I wouldn't advocate for taking on the full risk of a gut rehab to recycle the money. It seems like it's being pushed that "the more beat up a property is, the better the deal." While this might be true for flippers who go with higher end finishes, the risk isn't worth it for a rental.

I've done the BRRRR on 4 properties now. Got money back at refinance on 1, left about 7% in another, 10% on another and the last I'll probably leave about 12% in, which is more than I'd like. I think it's a great strategy, but like all strategies it has its time and place.

My property manager does this now in NC, but she doesn’t raise the rent.

Because of COVID, everyone is on a month to month lease and if they stop paying, they don’t get lease renewal and it goes to court to vacate. I’m not sure of all the ins and outs, but it’s how she’s been able to get rid of non paying tenants.

So awesome and inspiring. Hope to be making these kinds of deals happen soon too!

First thought: This government has no problem printing out a crap ton of money and throwing dollars away. So if we bankrupt the banks by not paying mortgage, they'll just get bailed out.

Second thought: There's this thing called foreclosure when you stop making payments. Banks will probably just foreclose.

Third thought: I will buy your houses in foreclosure

If you're house hacking, don't over think this. 

You're just trying to subsidize your mortgage. If you can get your tenant on the other side of the duplex to pay for at least 75-80% or more of your mortgage, you're doing just fine. Once you move out and rent out the other unit, you'll be plenty positive. 

Negotiate with the contractors, get firm line itemed quotes with timelines and benchmarks, then pull the trigger on the build. Once it's built, start cash flowing. That's pretty much it.