All Forum Posts by: Timothy Jacobson

 @Scott Hollister Is there any more information about the local meet ups (time, place)? I am realizing now that I may have missed the meet up that may have happened tonight but I would be interested in the future. I appreciate your input!

@Mitzi Castiglione

The house looks awesome. Might you be able to go into a bit more detail on how long the rehab took, and how you were able to refinance without a traditional seasoning period? 

@Jeff Dulla - 

Jeff, we would certainly consider holding the mortgage under our personal name for a time period. We are not confident yet in our assessment of fannie/freddie requirements, so would be looking to an expert, maybe such as yourself? 

@Jorge Ruiz - 

Profit First author is Mike Michalowicz. Highly recommend reading. 

@Jeff Bridges - Yes of course that's an excellent clarification. You reminded me that I need to more heavily consider maintenance reserves, and liquid reserves in general. 

 Thanks for the info. 

@Brie Schmidt - I believe I understand what you mean about determining the minimum amount to have in an account at all times. 

Right now we have investors with 12 month loans that come due in July and August. What I translate your advice to, is that we will start building up the accounts to appropriately pay off those loans and at the same time ween ourselves off them. So although we may continue to use investor money in the form of JVs or private loans, we should build our operating accounts so that soon we no longer need external funds. 

Also, we really appreciate the advice, and will listen to your BP episode stat. 

Our business finished our third project, a BRRR in New Britain, CT. We bought for about $50k, put $60k into it, and are now renting both units for ~$2100/mo. Based on comps and research, we estimate an ARV of about $140k.

One next step, we believe, is to start getting to banks and credit unions to refinance the property so we can use the cash on subsequent projects. We are putting out business proposal together that includes our business plan, portfolio of successes the past 9 months, our financial statements, and tax returns. 

Can the BP community potentially suggest lenders that are looking for loans like ours, aka our business? 

We are approaching the 6 month seasoning period on this property, so it's not as critical for this project, but would like to begin looking for financing a lot earlier for next projects. Specifically, we just bought a single family (7 bedroom) property 2 blocks from Central Connecticut State university that we plan to BRRR. Our goal is to refinance ASAP with an estimated ARV of $200k

In under nine months, we have three projects under our belt. One was a flip, one a buy and hold, the third is a BRRR. A fourth is on the way: this will BRRR as well, and we will JV with a private partner to rehab.

Now that we've seen some success, and are getting our feet wet (barely), we are looking to understand how the business can sustainably bring value to our lives. 

Hypothetically, we have three members at 45%, 45%, and 10% ownership. 

One 45% member is our contractor and day to day manager. With our projected cash flows and project plans, we believe we can begin paying him regularly. This frees him up from other jobs to focus solely on our business. 

We are initiating a Profit First system,  We are thinking of starting profit (distributed quarterly) at 1%. But we are a bit hesitant to start an "Owners Pay" percentage higher than 10% to begin, because we are beholden to initial loans from investors. 

We would like to better understand how to structure pay to remaining partners. Does anyone have advice on a profit first system, or tidbits on how you put systems in place to calculate cash extraction while maintaining growth. 

Good evening all,

We have recently completed our first cash purpose that we have rehabbed and are currently renting. From what I hear, there is a 6 month seasoning period until we could refinance (thus placing cash back in our pockets). How true is this? Are we limited to this "seasoning period"? Is there any ways out of this? Thanks for the feedback!

Tim