Hello BiggerPockets Family,
I'm Justin White, I am from a small town in Michigan's Upper Peninsula called Menominee (named after the local native tribe). I currently live in Saint Mary's, GA and am serving in the United States Navy as an Engineering Laboratory Technician on a guided missile submarine. I married my best friend last October and we love enjoying life together.
Why I love real estate: I love challenges. Real estate deals have so many pieces yet have an odd sort of simplicity to them that I find very intriguing. I also love being part of changing things for the better and rehabs are perfect in that aspect. It is a versatile investment category and always changing in some way. I love learning and there is plenty of that to go around in this industry! Besides having always been drawn to RE I believe that it is the best way for me to provide the best life that I can for me and my future family. Unfortunately my parents divorced when I was young and work restricted time with my dad to every other weekend only. I want to always be there for my kids and my wife and this is the vehicle I chose. My primary interests are rental properties (single family and multi family) and flips. In the future I would like to find myself on the development side. I would love to restore historic buildings and make them beautiful places for people to live while retaining their original character.
What I have done so far: (1) Live in flip in progress on our primary residence. 2700 sqft foreclosure that my wife and I are renovating. So far looks like we are about 70k on the plus side, but still have a way to go. (2) Recently had our offer accepted on our first BRRRR, 3/2 1150 SQ ft, foreclosure. The inspection was today and we are planning on moving forward with it.
What I am currently struggling with: I have a private investor for the BRRRR, but have not been able to find great information on the details of getting a contract written up, how it affects closing, and how funds are transferred.
I look forward to making connections with this awesome group!
Justin, welcome! Great introduction.
Happy to help if you need some direction with the private investor. I'm experienced in LLC partnerships, mortgages, business loans... however you guys want to set that up. The private investor probably has some idea if they've done this before... but if not, you could present several options.
That would actually be great, I just need a little direction I suppose so I can piece together this last bit. We have mostly agreed on terms so far. He would like me to just do a lump sum payment (I believe its called a balloon payment) when the loan is at the end of its term. However, we will be going on deployment for 4-5 months and I will not be able to use the money for more deals during that time. So I suppose the issue is that he wants me to hold the money for at least a year so that his capital gains tax is 20% vice 35%, but I don't want to pay 4 months of interest on money I can't use. However, I want this to be a good deal for him as well so that I can work with him in the future. I also do not know who to have write the note up. Additionally he has not done this before.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you