All Forum Posts by: Jerry Brainard

Hello all and thank you in advance for taking the time to read this post. 

I am looking to purchase my first property within the next few months, I have my mother-in-law who is looking to be a cash investor and really has no ambition to do anything more then supplying the money. 

My hope is to be able to use the BRRR methodology and use her cash to buy.

My problem that I am most stuck on is how to structure everything, all the way from the beginning. From what I understand, it could be anything that works for both parties and something common is some sort of preferred return of 7-8% per year and then a split after that on the remaining cash. 

Personally this sounds fair, she makes a return on her investment and then a mutual split however that looks. 

But where do we start? Do we need an LLC?

If we did a split, would she be a partner on just the specific properties we work on together, or would she be a partner on the overall LLC? 

It’s just because I also have a larger cash investor who is more interested in multi-family homes and doing the same thing so I’m just not sure how complicated that gets working with multiple cash investors and how to set that up.

really hope I explained this okay and someone understands the question I’m trying to get across. Again, thank you in advance and am very excited to be part of Bigger Pockets.

Thank you for the responses. I actually gained some really good information from that. I understand its pretty hard without having a image, I will try to get some pictures of current condition so you can better visualize. 

I was not aware of either suggestions for painting or even repairing tubs, quick research says its definitely an option that is more cost effective and less labor that completely replacing the tub. 

Cabinets I was thinking of replacing hardware, and also painting them white. I just hate the oak but maybe thats personal preference, does this matter to buyers?

In response JD to other houses in my market. Its actually really weird, the houses by us are all pretty dated also. The ones selling for 190k plus have very little if anything done, and even the ones selling over 210k have a bit more sq ft, but still are very dated with carpet, original Formica counters, oak cabinets, and basic flooring. The thing I notice a big difference on is landscaping, some have pretty nice backyards where ours is a big yard, but with little appeal. Plus, houses here just sell very quick. Does that tell me maybe I dont need to do as much as I was thinking? or do more and just hope to get more? 

Again, thank you in advance. For my first time its just a little scary for me to pull the trigger on things, so hearing some of these things help reassure me that I am focused on the right things, and not what might being right to me but the buyers.

Jerry Brainard

Hello all and thank you in advance. This is my first time using the forum for any type of questions so hope I am posting in the right area!

My situation: I own a single family 3bdr home in very demanding market. We are looking to flip this house as we got a great deal on the house and only owe about 123k. We "think" we could sell the house AS IS for about 180k. But were "hoping", with the proper reovations we can increase the value to sell for atleast 200k. 

So that leads to my problem, where do we put the money to increase to most value? and how do we set a budget for this? If we wanna increase the sale price by 20k, is it smart to put 10k into it? I will write a short description of the house below to give you an idea of what were working with.

Carpet - definitely needs to be replace.

Kitchen - Plain White Formica counters. Oak cabinets. Beat up hardwood floors that need some work. 

Main Bath - same Formica counters with oak cabinets. old tub that has chips in it. 

Master Bath - same Formica counters with oak cabinets. old stand up shower with discoloration and doors that work, but not great. 

Painting -

These are the first trouble areas I think of when looking to add value, but please if there are other aspects of the house that play a big role in increasing value, please let me know.  This is the info I am looking for. I am hoping this house can jumpstart my real estate career if I do this properly. Most the work I am prepared to do myself, so hopefully that can save some money. 

Other things I am specifically looking for is suggestions on products that are budget friendly but still give the house great appeal. For example, types of coutertops (is laminated dated), types of flooring, color schemes, etc.

Thank you very much!!