The BRRR Package | Mortgage Monday

[@carolinac4406]

Perfect timing! I will be reaching out!

[@brady_morgan]

I call my strategy the BRFR.. Build (with cash), Rent, FInance, Repeat. Brand new properties that provide infinite CoC return. That cash flow is great too as abnb. Definitely an improvement from back when I used to BRRR. Easier to find a deal on land than a home right now too.

[@kateeco3850]

Agree, met couple successful investors who follow this strategy 😃 where are you currently building, if you don’t mind me asking?

[@brady_morgan]

@@kateeco3850 Steep learning curve but well worth the effort. Now I am working on teaching others how to do the same. I am in the mountains of Wyoming, near Jackson Hole.

[@brady_morgan]

​@@kateeco3850 Yeah, steep learning curve but its worth it for sure. Trying to do what I can to help others learn. I am in the mountains of Wyoming, near Jackson Hole.

[@brady_morgan]

​@@kateeco3850 Yeah, steep learning curve but its worth it for sure. Trying to do what I can to help others learn. I am in the mountains of Wyoming, near Jackson Hole.

[@brady_morgan]

@@kateeco3850 Yeah, steep learning curve but its worth it for sure. Trying to do what I can to help others learn. I build in the Rockies, near JH WY.

[@linhpham6909]

Definitely will reach out soon

[@linhpham6909]

Thank you for your awesome information to help us

[@andrewmccarty9372]

Top shelf information on DSCR Loan options. I will be calling you guys when I refinance later this year. Thank you!!

[@christianbachelder8608]

Appreciate it!

[@naplesinvestor]

Great show!

[@TaishanSF]

For Hard Money Loans, especially if it is going to be your first flip, a lot of lenders I spoken with require at least 30% down depending on the asset, case by case can be more. Do you provide 10% down for first time flippers?

[@christianbachelder8608]

Its always a case by case scenario. Experience with flips helps massively. But so does other real estate ownership, reserves after closing, net worth, the strength of the project, and fico score. For first timers, you are correct, typically more than 10% down is going to be required.

[@Austintwo3]

shout out from Oklahoma

[@delontamcclain4571]

I love the content & transparency. great work guys..my question is ..... once you get out of the bridge loan & go into the DSCR, dosen't the borrower still have to put down 20%-30% or whatever the % for the DSCR ? will this be a double closing ?

[@christianbachelder8608]

It depends on where the LTV lies after the renovation. For example, consider the following: 150k purchase, 50k renovation, 90% financing, 300k ARV You would have a loan amount of 180k (90% of your 200k project cost) and an ARV of 300k So when you go to the DSCR refinance, your LTV is 180k/300k or in other words, 60%. In this case, you would not need to put more money into the deal and actually would be able to CASH OUT up to 75% of the 300k. This is obviously an ideal BRRRR while some others may go over budget or under appraise based on your projections. So to answer your question, it depends. If you are short of the 75% ARV refinance, it may absolutely need more money into the deal, but if you plan your figures accordingly like David did in the episode, you will not need to put any more money into the deal during the DSCR refi stage.

[@delontamcclain4571]

@ thanks Chris, it definitely makes sense. I will be reaching out to you in the next month or so. Thanks & take care

[@phil1954]

You guys brought up a point that I tried to tell lots of investors. For flip loans, I'm not as worried about ping a few percent more in interest. I am more interested in the closing cost. I look for products that cost 1 point or less.

[@phil1954]

If you can cover 20% of the total cost, I've found products with local lenders that will cost you 1 point and no appraisal.

[@christianbachelder8608]

100% Phil. There are private money lenders out there that do all sorts of things. Low cost, 100% CLTV, even waiving points for a stake in the property. We offer institutional financing which is accessible to the general public so you may absolutely find some niche lenders that can do some unique things that we cant do.

[@chessmaster461]

How do you determine how much the repairs will cost? Is this done beforehand? What if you go over budget?

[@christianbachelder8608]

In order to fund, and honesty even to just generate a quote, we typically request a prepared renovation budget from your contractor.

[@carltondarville5387]

I have a question what is minimum credit score required for DSCR loan I have 5 properties here south Florida I’m interested in refinancing into DSCR loans

[@Ziriao]

What is the lowest loan amount you guys do? Would you guys be able to do a 50k loan?

[@numinoustravel5265]

150k residential and 500k commercial

[@christianbachelder8608]

I am not sure who that is responding on our behalf, but it is not correct. We typically maintain a 100k min loan amount for residential deals and a 400k loan amount for commercial, but case by case can go lower, especially if there are multiple deals involved. For a standalone 50k deal, we would not be able to help unfortunately.

[@numinoustravel5265]

@@christianbachelder8608it says it on your website

[@richie1317]

I would love to schedule some time and dicuss goals with you guys and get locked in. I spoke with Dalal a few months ago but it didn't work out then. I'm on my 4th house hack and I'm looking to start growing faster. Will reach out. Do you have any ground up construction programs?

[@kvgable]

can i pre approve both loans at the same time? this way i know for a fact i have an exit strategy with the DSCR refinance.

[@christianbachelder8608]

Yes, just as we said in the video not only can you, YOU SHOULD!

[@EdwardL10501]

Can you do SBA 504 loans?

[@christianbachelder8608]

Yes but on a strict case by case basis.

[@EdwardL10501]

@@christianbachelder8608how about a VA construction loan?

[@christianbachelder8608]

@@EdwardL10501 No we do not do VA construction loans.