All Forum Posts by: Justin Siddall

Yep :) Get to see under the hood from the get-go, got the guy to get it done and have the time :) 

Hello BP,

I've got a duplex under contract that is a perfect BRRRR with lots of equity room and my current money partner is working with me on a different flip. If anyone is interested in starting a PML relationship please send me a DM and we can intro and talk about the deal. I have the contract and services I've used multiple times (title company, contractor, and I am also an agent.) This deal has lots of equity and multiple exit strategies, now just looking for the last member of the team to help get it done :)

Basics: 

It's a 2/2 per side Duplex in Pensacola, FL right outside the main gate of NAS Pensacola.

Expected all-in (Purchase, Rehab & 10% Buffer): 150k 

Conservative ARV: 245k

75% Cash-out Refi after Seasoning: 184k

Rents: 1200-1400/side.

All the Best in Your Investing!

Justin

Hi everyone, I went full-time real estate investing earlier this year and was just issued my Florida Sales Associate License. I'm reaching out to see if anyone knows of a broker with an office in Pensacola that would find value in having an investor agent that is full time REI to hang my license with?

Thanks,

Justin  

Just to add to the impressive demographics information :)  Mechanical Engineer

Hi BP, 

I am BRRRR'ing and have an old work friend that is willing to invest as a private lender for the purchase and rehab cash up front (1st one found! On the hunt for a few more!). He will get first position lien on the property until I finish the BRRRR and once I refinance, he'll get a lump sum principle plus interest payment for every month his money has been out. Then, we'll do it again.

In your experience, (recognizing the non-lawyer caveat) is this a JV relationship? Can it be covered by just a Promissory Note and Mortgage for each deal we do? Does my lawyer or the title lawyer draft these?

Lastly, what might be the best way for him to send the funds? Direct to Title company? To me? If me, does that create a tax event before I purchase the house and then again with any gains on the refi?

Thanks!

Justin

@Brittany King

Hi Brittany,

I love your goal! I actually have the exact same goal, 10k/mo in the next 4 years and I believe it's completely doable. I think @David Greene would be be disappointed no one has mentioned the BRRRR strategy to get after your goal. The biggest thing for you is you will have to network like crazy to find an investor (or a partner depending on who you find). With only 10k it'll take leveraging other people's money. What I did to find someone to invest in me was just talk about real estate to everyone and my goals and strategy. Then, one of my former coworkers randomly was like "give me call" and just like that my first investor.

The crash coarse would be to read:

- BRRRR by @David Greene

- Long Distance Real Estate Investing by @David Greene

- The Book on Estimating Rehab Costs by @J Scott

- How to Win Friends and Influence People by Dale Carnegie (Important for that Networking Piece)

- What Every Real Estate Investor Needs to Know about Cash Flow ... by Frank Gallinelli (To bolster your knowledge of running the numbers)

If you want to go a little deeper, I love the CPA advice on BRRRR from @Brandon Hall.

Listen to Podcast 327. And search on BiggerPockets for the blogs on the metrics to identify growing markets with cash flow.

Good luck! And if you want more specifics on my strategy feel free to message me :)

Justin

@Mark Lynch

That sounds like a great deal! Definitely do whatever you can to get creative and make it work! I would also shy away from doing things that require massaging information to a lender.

You mentioned that she owns the property outright. Have you brought up to her about the Owner Carry (Seller Financing) option. The best part is you can structure the deal with whatever terms accomplish both her and your goals.

You can structure it where you pay her your “mortgage payment” for as long as it takes to save as much possible for the down payment to re-approach the bank.

Good luck!

Nice job Joe! I love the tile choice in the kitchen and the deal looks amazing. Thanks for sharing your deal deep dive with us. With your private lenders, how did you structure sending the money from the investors for the purchase and rehab? Did they give you the cash and did that create an “income” for you that’s taxable? Thanks for any insight.

Pro's

I am using family & friends OPM for the first time and have questions about the specifics of transferring investors' money and the implications. The OPM is lined up and I'm finalizing my core 4 in my target market. When I'm ready, what are the options for accepting funds and purchasing the property as cash? 

If I accept the funds in my separate account, am I creating a tax event with a huge income gain? 

Is it better to have them transfer funds to the title company?

When I refi, same questions. Do I accept and pay the investors back? Or, do I have the bank disburse the principle and interest back to the investor and me the rest?

Thanks for all the advice,

Justin

Hello BP,

The Navy is moving my family to Seattle for about a year and a half and we only have a few days to find a place to live. My wife is finishing her degrees at UW and I will be commuting early in the morning to the ferry. Is anyone or does anyone have a recommendation for a good rental agent in Seattle? Someone that can line up a few places for us to see and can help in the rental search. Thanks!

Justin