How To Finance A BRRRR Property

No one sell their house 300k under the market price

What does ADU mean?

If you invest $700,000 cash and you get a gross $3500.00 rent, that's about 6% ROI - Take out about 1% in maintenance cost - so you get about 5% return on cash. Not a very impressive deal but then you've got $150,000 sweat equity sitting in there, and that kinda makes it worth while
But then again, there is some speculation behind these numbers and there are challenges too, First you don't know if the market is still good enough to get this sold at $850K - and then you MUST have a very good and reliable group of contruction works and their crew to get it all rehabbed on time and within the budget of $140K

But then again, you had ADU DADU in their that was really the cherry on the top,

Clever

Cash flow is a bit low?

What if no body rents it after 2 years

Also I see you calculate $500 Cash flow after deduct PITI...but don't you include maintenance,vacancy,repairs,management (if apply) etc...Im learning and maybe going by the book but this is one reason everytime I do calculations like this I found that the deal doesn't make sense...Hopefuly you can explain this...Thanks!!

How do you determine the Monthly Rent Value from the ARV?

Yeah this guy is full of crap. How the f is a bank going to loan you money for an ADU that's not even built? Also he doesn't metion all the heloc's or cash out refi payments you are gonna have to make with interest. This Brrrr is complete stupidity. I hope no one does it. It logicly and mathematically doesn't make sense.

Borrowed $1.5 million to have a $1500 return. 😂😂😂. Let's hope everyone pays rent on time and nothing breaks at this property. I'm not even going to comment $8000 on a 1000sq property

Hes had good handwriting. He could be a handwriting modl if the real estate gig does not work out

Hi .do you do all under LLC or under your own name ? Thank for you video

This is Great! But do not forget the other cost. Property Taxes, Up Keep and Maintenance. You renting and Tenants always breaking. So, Im going to assume there goes the extra flow of money coming in. But you do get 3 homes for Free. Still a Win!

Thank you for simplifing the beer strategy. These are great videos.

Whats a Brrrr? 😭

Can you explain one example with the hard money landing example for BRRRR

800k for 1000sqft? $800/sqft ?

I live in Canada BC things are different here

Wait how you payback the bank over time

3500 a month for the house as renters, but with 2 adu's in the backyard, now the renter have to deal with more neighbors and lost a yard, less street parking, its probably not worth 3500 a month anymore.

Isn't there an 18 month window for the refi?

Love it

I don't get the idea of RE-FINANCE the property. Is he re-financing the property to a new buyer? and he is acting like a bank? after @5 min I did not get the idea. Someone could please help out? thanks!

Whats a freakin BRRRRRRRRRR deal??

Any adu in Seattle you might rent it out but you can’t price them separately from your main house. You need to sub divide you land with the city.

Thank you Thach!

Thank you

You are a fantastic teacher ! Thanks for sharing all these wonderful knowledge.

Let’s say you put 20% down on a home & then do the BRRR method. Can you still pull out 70% out on a refinance?

Can you make a video on rehab skills you must know and learn and handy skills if you are doing brrrs?

Well educated, well said

First time watching your videos, amazing information, thanks.
Can I apply the same techniques for small deal?

I’m a bit confused how your getting 800k value on two separate Adus? I’m doing this in AZ however, value is still based on all structures together because they are on one lot. How are you able to get the banks to split up the three structures separate if they are on one lot?? I have a 3/2 main house, studio adu attached unit and a 2/1 guest house detached adu built in the back. Bank sees it as a triplex but still refi on one value not three different values. Can you please clarify this?

Honest question: Who would spend $3500 a month on in the main home with 2 ADUs right next to it? Unless you’re renting it out room by room maybe?

How to refinance a brrrr. Not Bank of America. Which best Lender to finance though?

No. You can't value the Adu independently of the single family. And it doesn't have the same value as a stand-alone single-family. It will add some value to the existing single-family but a single-family with an Adu is not going to get you the same amount of money as two single families. And you can't Finance it separately. The mortgage is against the lot. The only way this would work as presented is if you could subdivide the lot into 3 lots. And those three lots would have to be in similar size and similar Street access, utility access, Etc to other comparable single families.

Doesn’t it ruin your credit if you refinance all the homes? Refinancing is part of the brrrr process

My son college paid for in law Scholarship My daughter to I can’t buy Property 1 year Then they’ll charge me more for school

My kids scholarship I had to stop buying homes or they won’t pay for his college law

Today meeting 6 until building for sale 15 hours no sleep because of u

Will a bank make a loan on a separate building that's on a property that already has a lien?? In this case 2 loans on 2 buildings sitting in the same property with a current lien??

I need to meet with you lol. I’m coming back from Oki to Oregon. I would love to pick your brain. Great video.

W wife

In CA they appraised the ADU very low, maybe lower than the cost you put in to build it. They said there are not many comps with an ADU in the area. I hope in the near futures ADU will be appraised much more than now when a lot of houses with ADU being sold😊

Fucking gold omg you are amazing

Amazing Post Thach , I appreciate🙏🏾 the details , learning
It's mind Blowing the way you hassle the BRRRR..

How do you get 800K ARV from a 1000sqft ADU? Does not make sense.

Brillant Thach! Thanks for all the videos

So refreshing to see someone go through the #’s in detail. Thanks Thach, all of your content has been extended beneficial 🙌🏽

This is amazing! You walk away with $1.1 million worth of real estate, plus 15k+ annually in passive income, all with $0 out of pocket at the end of the day.

So this is how the rich generate millions out of thin air, while also having an unlimited unearned income.