All Forum Posts by: Trevor Deeter

We have a place under contract right now in Cobbs Creek. ARVs aren't staggering, but our play is brrrrr. I'm not super familiar with the area, and would love to hear any other thoughts or info on that area. Anyone have any info on West Oak Lane? What's the tenant base like there? Thanks!

I'm speaking with GCs in my area. As very few are available, I'm limited, which is a bad spot to be in. I feel like I can't be picky since my options are limited, but to not be able to scrutinize over quality as much as I'd like to on my first rehab kind of kills me a bit. Anyway, one contractor I found that's available is asking for 50% up front, then 30% at the half way point and the remaining 20% at the end of construction. What is the industry standard for how you lay out time lines/deadlines, expectations, penalties for lateness of work, etc? Is it standard to pay half up front? I'm sensing that is high, but my lack of certainty brings me here. 

Thanks all

Thank you everyone for this input and information! Really helpful advice

@Mike Bonadies Can you please explain the accrual rate? I'm unfamiliar with this term. Is that the equity you gain each month paying down principle? Thank you for all the feedback and information guys!

@James Masotti @Mike Bonadies My wife and I have also been checking out SoNJ... Burlington, Gloucester, and Camden. Being from the area, I know the reputation, especially of Camden. I'm apprehensive to buy there, but there do seem to be some opportunities sprouting up around the University. Are you guys worried at all about tenants? Or would the strategy be to only buy in the up-n-coming pockets, brrrr, and rent at a price that prices out a potentially sketchy tenant-pool? I have similar apprehension when I look at places like Norristown and Pottstown. Camden could have better long-term appreciation potential than some of the other locales due to the University and proximity to the city. I'm a rookie though and would love to hear your guys thoughts.

Does anyone have an references for a quality investor-friendly inspector? We're looking for someone who will either do walk-thrus with us with no written report, or offer's a no-frills report. Our aim is to find a more affordable way to assess our investments prior to purchase.

Thank you

Hello BP!

If I want to use a friend who is a contractor, and rather than pay him offer him an equity stake in our flip... what is a typical fair share for him for his work? This is based also on the notion that I will be paying for materials. It's just his handy-work and use of subs that we be footed on his end. Is there language in the contract that addresses penalties for not meeting deadlines? How should we word that and what is fair per the industry standard?

What if we want to have a friend give us money to contribute for a flip, and instead of paying him like a lender, we give him an equity stake; Assuming we each put in the same start-up capital, but I manage and oversee the entire flip start to finish... what would be a fair split? 

What if we put in 0 money, friend puts in all the money, and we do 100% of the work. What's fair then?

Thanks!

Hello all!

What are the differences in Partnerships, Investor, Co-Investor, Angel-Investors, Silent-Partners... I'm finding a lot of varying terminology and while it seems like they may all be the same thing, it's best I put it out there to be certain I'm clear.

Unless we "Partnered/Co-Invested" with someone who had more experience than us, we'd likely just want a situation where we would have control over most crucial decision-making. Since we are just starting out and will just be approaching less-experienced friends and family for investment, we want to make sure we choose the structure that best suits the situation.

We're aiming for a contract that is pretty much them lending us money without being able to get involved in our ground-level operations. Is this considered a silent partner?

Any pros and cons for each title? Differences?

Thanks for any assistance

Hello fellow BP'ers!

My wife and I are ready to deploy our nest egg into REI. We are free from the confines of a traditional work schedule and can really dedicate as much time as is needed to manage and maintain our hopeful real estate business. My wife has strong managerial and book-keeping skills and could likely handle GCs quite well. I am a licensed realtor in PA, so I have specialized skills in other obvious areas of the business.

We have a few approaches that we've considered in how to deploy our money for it's first cycle, and would appreciate some feedback from those with greater knowledge.

Between our liquid assets and access to loans, we have the option to spread our nest egg out over several projects. Our aim, much like many BP'ers, is to have a flip business that supports scaling our buy-hold rental portfolio. We are hoping to buy between 4-6 properties during our Q1. We'd hypothetically buy a mix of flips and BRRRRs, all highly distressed, all would cash flow, and all in speculative up & coming neighborhoods. First off... is this too ambitious for first-timers?

In general, how much of your time as an investor is spent enmeshed in the renovation process once it has started? Aren't we just planning with our GCs and then our GCs handle most of the grunt work during the reno phase? Other than my wife and I checking in on our GCs, what type of work load should we be prepared for in this phase? Is it really going to be hard to oversee 5 renos at once? I'd like to think we're capable, but would hate to dive in and find out I'm wrong lol!

On the other hand, we have opportunities in our city to buy either vacant land or knock-downs in rapidly appreciating areas, put up new construction, and make an absolute killing. Inventory in these areas sell within days, if not hours. Is the notion of rookies taking on a demo and build-out of new construction again too ambitious? We could find ways to still have multiple projects going on even though this option would absorb more money. We could still always use OPM/loans to pursue other opportunities while the project is being built. 

We would love to pursue the new construction option since we could probably be all-in for 350k and sell for 525k+. Right now, we have an opportunity to submit a bid on a piece of land that would yield an incredible return if we built on it. But friends of ours who are in the business have advised that we shouldn't start out with a new construction project. We really don't know anything about new construction, nor do we even know any builders yet.

Would love to hear how all of you might structure your nest egg in our position.

Appreciate all the feedback I might get here!

Thanks!