(1/n) I have been lurking in the shadows of my SMB Twitter account and have decided that today is the day to introduce myself and share the purpose of this account. So, with that being said, ⬇️⬇️
My name is Juan Crawford, originally from Jalisco, Guadalajara.
Following up here, did a ton of research on this and ended up going through my Charles Schwab brokerage. Can borrow 50k - 99k at 10.250% APY. Will lend up to 70% of my holdings in VOO and VTI.
This is literally cheaper than my hard money lender, no origination fees, no inspections, no contingencies, and can move at the speed of cash. I will legit save 5k-7k per rehab alone with this strategy, while being able to leave my cash in the market growing.
Thank you VERY much for putting me on to this. Absolutely doing this every time I rehab a house. If you’re ever in Chicago let me know, beers on me.
Genuine question for my real estate homies:
If I buy a house for 50k and rehab it for 30k—so I’m all-in for 80k—and I can easily fund it with cash to avoid holding costs, interest, origination fees, loan maintenance fees, etc., and then just pay financing fees once when it’s finished and ready to place a DSCR note on it… why wouldn’t I do this?
It saves me about 7k on a six-week BRRRR, yet I’ve had five people tell me not to use my own money and not one can explain why it’s genuinely a bad idea.
Thoughts? @N8RealEstate@ThinkAppraiser@NickMaccini@J_Koenig21@2GuysTake@meetmikehiggins@Flipping_SFR@realestatedude0
@J_Koenig21@JoshShriner Currently at 7 properties. Would like to get to the point where I can do 2 at a time but I don’t have the skills, team, or pipeline to be able to actually execute that at this stage in my RE investing.
@JoshShriner@J_Koenig21 Exactly my thoughts. I’m done paying someone 7k to borrow their money for 8 weeks when I can fund it myself and only have the pipeline to be able to do one deal every 6-8 weeks anyway. And if another deal does pop up I’ll borrow.
@J_Koenig21 If I only have the capacity to find and manage the rehab of 1 deal at a time would you say there’s nothing wrong with funding deals out of pocket to avoid excess fees until I have the bandwidth to then take on 2 or 3+ projects at a time?
Looking to learn how to get better at finding off market properties to BRRRR. I’m not looking to learn how to wholesale and build a 10 contract pipeline monthly. I need to learn how to find 1 off market property every 6 weeks.
Who is the best person I can learn from?
With rental #5 being finished, we just closed on #6. Purchase price $50k, rehab budget 23k, ARV of 120k.
4-6 week rehab timeline. Using hard money for 85% of acquisition and 100% of rehab. Will refi out into a DSCR note after rehab is completed.
Happy to give details around every cost, total underwrite, construction details, ect.
If you’re interested in seeing all of that drop a comment below.