All Forum Posts by: Tom O.

Yes, you are so right. Every idiot I meet hasn't done a deal; doesn't own anything and is living in an apartment but they want to do a BRRR. They think they can just buy something, hire a GC and viola it will be perfect in three months they can sell it for some really high price.

I grew up in construction. My dad was an architect. We built four houses with my dad being the GC while I grew up and worked on those houses. I worked in a lumber yard in high school and my doctor brother worked for electricians. 

And I don't want to touch a BRRRR especially in such a heavily regulated City like Chicago.

And these young fools are like: I'm going to do a BRRR and make $40k. 

I always say: BRRR is just a tactic. The GOAL is to make money in RE. That's why I like turnkey. I know what I'm getting. I can handle "light rehabs." Kitchens. Bathrooms. Floors. Roofs. Tuckpointing. But I'm not going to do a "gut rehab" anytime soon.

I feel like Mickey O'Rourke in Body Double when I say to them: "You don't even know half of what might go wrong and cost you money. Do you have any idea what a 2 X 4 costs right now? Have you ever submitted plans to the Chicago Buildings Dept. to get your building permit approved? Do you have any idea how long that takes?"

I tell them I wouldn't do it and I own 4 buildings and have rehabbed 4 apartments. 

I forgot to add the most obvious: MLS. I know everyone thinks that doesn't work but I've gotten all of mine except for one building (FSBO) that way.

I would screen her, and if she passes, put her on the lease and move on. Two incomes are better than one. 

Not sure. I'm first looking for creative ways to do the deal. Maybe Seller financing a portion? I don't think a hard money loan will work will it? The lenders always ask about the source of the downpayment funds. I thought that precludes a hard money loan. 

So I need 25% down on a huge building that cash flows incredibly well. I have about half of it. It's a 5 unit plus so I need a commercial loan which has tougher lending rules.

Bank lending rules won't let me borrow the rest of the downpayment, I believe. So how do I still do this deal? I know I need adequate reserves, etc., but I have the ability for more than enough reserves from an untapped HELOC.

Sorry for the duplicate: I posted this in tthe wrong place and can't figure out how to delete the other post. 

So I need 25% down on a huge building that cash flows incredibly well. I have about half of it. It's a 5 unit plus so I need a commercial loan which has tougher lending rules. 

Bank lending rules won't let me borrow the rest of the downpayment, I believe. So how do I still do this deal? I know I need adequate reserves, etc., but I have the ability for more than enough reserves from an untapped HELOC.

I would screen her, and if she passes, put her on the lease and move on. Two incomes are better than one. 

None of the above. 

Confessions of a Real Estate Entrepreneur