How To Finance A BRRRR Property
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- เผยแพร่เมื่อ 17 ต.ค. 2024
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Thach Nguyen has come a long way since arriving in America at age 4 with his parents, four brothers, and sister in 1975. Focus, drive, determination, and great mentors paved the way for him to go from a homeless refugee to a multi-millionaire.
Thach is the CEO & Founder of Thach Real Estate Group and principal of Springboard to Wealth. He is not only a seasoned realtor, investor, coach, author, and speaker, but also a proud ambassador of the American Dream. During his 30 years in the real estate industry, he has built more than 300 homes, townhouses, multifamily units and completed over 100 flips, and owns over 100 rental properties giving him over $100,000 a month in passive income. Thach and his team have assisted more than 1,500 families to create their own American Dream of home ownership, ranking him in the Top 1% of all real estate professionals nationwide.
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Thank you Thach, I’m a former student, you just answered a question I had on a property I made a offer on yesterday, all cash in, no hard money. 165k, rehab 50k or less and Arv 265+. Average rent 2k
So refreshing to see someone go through the #’s in detail. Thanks Thach, all of your content has been extended beneficial 🙌🏽
Follow one path to success. Thach does BRRRRs in washington. I do small apartment complexes in OKC (5-50 units). You must not get distracted with shiny object syndrome. Stick to one path of success until you are financially free. How I was scaled from 0 to 90 units, but am trying to sell off my mobile home park for a profit to put into more apartment complexes. I struggle with shiny object syndrome but now have clarity. To keep your life the most simple, just do the one thing that you have an unfair advantage in. Mine is off market small apartment complexes in OKC.
shiny object syndrome?
I wish I found your channel sooner. I'm here on a Saturday watching your vlogs one after another.
It's really hard to believe a 1,000 sq ft shed in the backyard of someone else's home is worth 800,000
Lol you must not have lived in Seattle hahahaha a birds nest is 250k hahaha
That was my first thought. Both ADUs are worth the same as the main house? I must be in the wrong markets. 😂
I’m In Santa Barbara Ca, a beat up fixer house, 1,172 sq’ just sold for $1.72 million
Send me info on becoming a student
I dont think he’s building a shed for $300,000. But agree, hopefully he keeps us posted how this deal goes… lol
I'm new to this mindset, I think I found my new mentor 🤩🤩🤩
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?
He talks in other videos about Seattle allowing lot splits on adu’s
It's how it works in Seattle now. Affordable housing legislation changes made this possible.
I’m about to receive a pretty big settlement - and I honestly want to retire from my day job and become a multi property homeowner. I have a background in construction, but no knowledge in reality, I know I should start with just one property but I’ll have the resources to do more, I am a father and I don’t want my son to grow up the way I did, what route would you take to 10x this settlement
Nice and well done! Million $ question is how are you refinancing into a 5% loan with today’s rates?
The master has spoken...
Thank you for simplifing the beer strategy. These are great videos.
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😊
If Adu’s are appraised lower than what they are worth just look for properties with ADU’s instead of building them. Still worth it
I personally build ADUs in CA...I built my own ADU in my house..And I can say the best benefit is the Cash flow that I receive by renting them.
You are a fantastic teacher ! Thanks for sharing all these wonderful knowledge.
This is awesome! Thank you for sharing Thach!
Will the brrrr method still work with the interest rates increasing? Would you just not re finance and just hold long term for rent?
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.
Just curious about if you a lot 5% for vacancies, holding costs and move out repairs? We know that some tenants live hard core.
This is awesome man. I love this video
Wait.. we don't have that in the Bay Area. That must be a Seattle thing. If we add an ADU and a DADU, then our price per square foot goes down and it will be treated more like an apartment. Also, the ARV isn't calculated for each unit, it's calculated for the whole property.
Brillant Thach! Thanks for all the videos
I love these gems
How do you determine the Monthly Rent Value from the ARV?
I build ADUs in CA..the comps are the rental properties or apartments around the area.
You’re amazing thach🔥. I’m in the Seattle area to! Love you’re teaching and you’re a true hard worker and I truly appreciate your content👌🏼. I’m in the process to get my real estate license and I take my test in 2 weeks. With you’re way of teaching you have help me so much understanding how real estate works. Thank you thach for your knowledge!
Du ma Thach! I love all these videos you been coming out with, so much information for a beginner like me!
-Giang Nguyen
Question, say I got a loan to buy the main property, and I don't have the funds todo the rehab do I take another loan out ? Or is this method only if cash is avaliable todo the rehab in order to get the intel upfront cash for the rehab ?
Uncle Sam is smiling 🤣
Hi .do you do all under LLC or under your own name ? Thank for you video
How is the adu worth more than the house?
That’s what I wanna know
This is some good stuff 😮
Thank you Thach!
Your primary ‘s value was $800k with the land , so I would think the adu /detach dwelling would be worth 500k each .. I would think . I mean if u can get 800k in each addition.. god bless u
Questions when u say free land, does that mean u don’t pay taxes on the adu
Just a honest question what would you do or invest if you only have 40k for a rental property??
What about vaccines, maintenance and PM?
Let’s go! Love this vid
So you don’t need to separate parcels ? I would think you couldn’t sell adu separate. So the banks over there lend on the structure ?
How long before you improve it and rent it out?
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!!
Good shit bro... Need to get on your level!
Hi thatch, are the ADU and DADU have their separate address ? You have to sell it as a whole thing not individually right ?
In my state you need to have a Survey Engineer to separate your parcel into two lots. Then once you do the ADU/DADU, you should be able to have separate addresses.
Excellent, thanks for sharing 👍
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??
How dod you get a cash out refi on an ADU?
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?
Isn't there an 18 month window for the refi?
Hi! Im a huge fan! I have an important question
Would showing 250k income instead of 50k help me at all in the brrrr method? I guess it would just allow me to make a really big mortgage and not really help brrrr at all
Where are you getting a 5% interest?
How much property tax and insurance?
Equity doesn’t matter if u can’t leverage the equity to buy more deals
And in this scenario if u leverage equity ur negative in cash flow so equity isn’t as important unless u sell it but selling isn’t the way to go for wealth
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!
How long until you can refinance ?And is that better or different than using a HELOC to purchase an other rental and do the same thing. Currently learning about this process and this part is a bit confusing to me. To keep reacting the same process is it better to refinance or use the HELOC?
Heloc is basically like a big credit card (bettler) refi it's starting mortgage again they will give you cash but you monthly payment can go up and once you use the $ they give you is done while heloc you pay it back at your time but can reuse it
Yes I had the same question. Is it better to HELOC vs Refi?
How's he fitting 2x more housing units on the lot?
I don’t think Dallas allows ADUs yet. What are your students doing in Dallas?
So the additional units get their own address also?
who do you use for hardmoney loans
Hi Thach is the other ADU or DADU have property tax too.
Can you explain this same scenario if you were to use a hard money lender?
How would the monthly Morgage be paid while being improved (holding costs)?
Can you explain one example with the hard money landing example for BRRRR
I Would like to learn more about home investing . Please help me
I need to meet with you lol. I’m coming back from Oki to Oregon. I would love to pick your brain. Great video.
Fuck yeah man glad to see you posting a new video, love your content!!!
But how do you get you first 30% to put down for a building that cost 750000. How to start ? can anybody explain
First time watching your videos, amazing information, thanks.
Can I apply the same techniques for small deal?
Excellent post Thach! Your Big Event this week was 🔥🔥🔥I appreciate you Bro! 😎
Does your purchase price include down payment + mortgage balance? Or just mortgage balance
What?
Thank you
How are you getting cash out refinance loans for 5%? All I’m seeing is starting at 6.75%
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Cash flow is a bit low?
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!
Problem is interest rates are soooo high right now
Can someone help me, why is thach BORROWING money from the bank if the property is already his?
I just want to make sure i understand..........You can not refinance the entire value of your property after the renovations........ only 70%, correct?
most lenders require a minimum of 80% loan to value. Meaning if the property is 100k, they will require you to keep 20k in the deal as equity
Wait how you payback the bank over time
What does ADU mean?
Amen!! Yessir!! That's awesome!
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.
His buy formula. ARV - 8% - 10% profit - rehab = 556k
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?
Thach. your content is AWESOME. Mentor me :D
Great Explanation of financing with cash. Cycle the $300k into Paid Up Additions each time it passes your hands and use the policy loan to access the $300k as needed.
If you qualify You could possibly Use a $10,000,000 policy (+/-). For #IBC family banking. Avoid the MEC.
If he' s the cash investor, why does he need the loan?
Amazing Post Thach , I appreciate🙏🏾 the details , learning
It's mind Blowing the way you hassle the BRRRR..
How did he get 3x mortgages on the same lot?
How to refinance a brrrr. Not Bank of America. Which best Lender to finance though?
It’s ADU permitted in miami dade?
Today meeting 6 until building for sale 15 hours no sleep because of u
Thanks!
Love it
How do I get a mentorship?
Can you make a video on rehab skills you must know and learn and handy skills if you are doing brrrs?
How is the high ass interest rates effecting your brrr deals?
Hes had good handwriting. He could be a handwriting modl if the real estate gig does not work out
How do you get 800K ARV from a 1000sqft ADU? Does not make sense.
I live in Canada BC things are different here
Doesn’t it ruin your credit if you refinance all the homes? Refinancing is part of the brrrr process
What if no body rents it after 2 years
I came here to learn how to invest after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $160k, somehow this video has helped shed
light on some things, but I'm still confused, I'm a newbie and I'm open to ideas.
$3500/month for an $850k home? Yikes, that’s a tough market!