All Forum Posts by: Brian Oberg

@Eric Goldman It was, that definitely complicated the process.  Still learned a lot though and will pay off in the end.

@Morgan Putnam Absolutely going to BRRRR again, just looking for the next great deal. This last one took about 4 months to find, but in the end was worth it. Just need the right area, with the right team.

@Nicholas L. Great question, yes, couple of major lessons learned.  1) Spell everything out.  With your SOW, ensure you included everything you want and not just assume that is it included.  (i.e. Bathroom vanity / sink, ensure you include the mirror, lighting, faucet, ect. / kitchen islands with or without electrical outlets, ect.)  With your Project Manager, ensure you spell out everything you expect them to do versus what they think they will be doing (i.e. how often to provide updates, pictures vs videos, coordination of appraisals, etc).  2) Request copies of everything, permits, engineer drawings, invoices, ect.

First BRRRR complete, here are the details:

Purchase: $110,000

Rehab & Expenses: ~$75K

ARV: $202,000

Loan: $151,000

Rent: $1595

Cash Flow: ~$410

Learned a lot about permits, costs, SOWs, project management, long distance purchases.

In the end, will turn out good, but left more in it than I expected.

@Brandon Thomas Thanks for the advice.  I just purchased "The book on estimating rehab costs" and "Long Distance Real Estate Investing" for the trip.  Looking forward to reading them.

Looking for my next book to read.  In the last 2 months since we joined bigger pockets, I have read the following:

How to Invest in Real Estate by Brandon Turner (Great Book)

BRRRR by David Greene (Another Great Book)

The Book on Tax Strategies by Amanda Han (Highly Recommend)

The Book on Advanced Tax Strategies by Amanda Han (Great Book)

Your Best Business Entity for Real Estate Investing by Michael Landtrip (Horrible Book, don't waste your time or money)

Fortunately I have two international flights coming in the next couple of weeks with plenty of time on an airplane to read, so I want to make the most of my time.  What do you suggest and why?

Thanks,

At what point do you stop putting money into your business "savings" account that is designated to cover your Vacancy / CapEx / Repairs and use the money towards additional investments? Is $5K per property good? $10K? Just trying to figure out what is the right amount. Any advice is greatly appreciated.

@Michael Lee and @Hayden W Gibson Thanks for your reply and insight, I appreciate it.

@Tom Thomson Thanks for the reply.  If you don't mind me asking, how many properties do you have and what the amount of your policy?  Just trying to gauge if ours in the right ball park.

@Sean Morrison Thanks for the advice, I appreciate it. One question to clarify, and I am hoping the answer isn't "it depends on each state," But do you have to register both the parent and the child LLC in the other state or just the child in the state. So if I create the TX Series LLC an three child LLCs, the 2 in TX are good since that is the state the are created in, but for the KY one, I would have to register the child LLC in KY as well to be protected. That makes sense, but would the parent need to be registered too.