All Forum Posts by: Brian Nichols

Thanks for the reply.  We have spoken to Premier and they quoted $20k. I'm a little concerned that they are more focused on syndications and have seemingly tight attorney hours included in the $20k (we're wondering whether $20k would turn into $25k with 10-15 hours of questions over the first 6-12 months). I do, however, really enjoy Mauricio's videos on YouTube, they have been a great resource. 

My partner and I have been lending hard money as a side business are we are looking to scale.  We've interviewed a few attorneys, but have yet to find a good mix of availability, experience (with hard money or debt funds, most are syndication attorneys), and price.  We've been quoted $20k, $25k, and $30k for Reg D funds and we are reading that $15-20k is not uncommon.  Some of the attorneys have extensive experience with syndications, but far less with debt funds. (To be clear, price is a consideration but ultimately a nominal expense if we scale even remotely close to our goal, so we're weighing other traits above pricing).

While we're exploring the rules, regs, costs, etc of creating a fund, we're also looking into partials and possibly note hypothecation as a short term alternative. It seems like there is a very fine line separating partials from being a security (some would argue no line at all according to some threads here) and we've yet to find a securities attorney with any experience with partials. 

Any attorney recommendations in one or both of those areas is greatly appreciated. 

Join the Facebook groups "Contractors and Handymen Referrals of Greater St. Louis" and "Deals Gone Bad."

Request referrals / bids from the former and check the latter to see if anyone had issues with that company/person.

Anyone reasonably skilled or professional will not be inexpensive in this market, there is simply too much demand for contractors.
  

Adams Foundation Repair, just had a client install a full drain tile and pump system with them.

203k loans are for owner-occupied property only.

Search for investor oriented Facebook groups in your market.  There'll be troves of buyers, sellers, rehabbers, wholesalers, etc looking for networking and sharing what they are looking for or selling.  Right now, a lot of my local groups have moved into webinars / video chat networking.  Lots of valuable contacts. 

Non-QM lending is basically paused at the moment. Conventional loans / refi's are still flowing and I suspect the fed will do everything it can to keep that the case. I would say the biggest risk for a BRRRR right now is that if prices go down and/or lending changes after your seasoning period, your cash out could change significantly. Oh, and cash reserves as well... tenant demand may be low and quality tenants may be hard to find if things continue to get worse.

@Art Perkitny Interesting data, but St. Louis City and St. Louis County are two different legal entities.  Most of the news you hear about St. Louis' crime stats or economic stats ignore that fact.  The overall population of St. Louis Metro is over 2.8 million but the data in those graphs is for the city only, which has a population of ~350k.

I have represented multiple out-of-state buyers that have been happy with their CAP rates, BRRRR cash outs, etc in the city and county. Of course, just like any market (prior to the current state of affairs, perhaps), prices were getting higher as more and more investors started to jump into the mix.

Biggest thing I've noticed as an agent is that my investor clients have lost their non-QM funding sources.  Especially difficult for those that were mid-refi or had a deal under contract.  Otherwise, deals are still flowing and prices don't seem to have been affected yet.