All Forum Posts by: Nathanael Sandstrom

@Travis Wylie thanks for your note! I'm still trying to land my first deal, but looking forward to sharing my story once I do. 

@Tim Herman Thanks for your thoughts! I am not planning on doing any flips, this would all be buy and hold. But I get your point. But to answer you question, I am finding the deal; negotiating the deal; managing the rehab; doing the property management; etc. She is the financing and (importantly!) a mentor. But your question is exactly why I was asking about the equity part. I have perused a number of investment agreements which seem to be structured the way I described with a 36 month term, sometimes paid quarterly, though more frequently on an annual basis, but sometimes not until the end of the term. Ultimately, she and I will work this out together, but I figured looking for outside input on what a fair arrangement might look like would be a good idea. So thanks again!

Hi BP Crowd!

I am a looking to get my first deal and am trying to nail down a source of funding in advance (along with all my other key players). And I have a friend who has suggested that she might be willing to be my private money. She is a successful real estate developer in her own right and actually she's my boss and is excited to help me build a portfolio. She asked me what I thought this might look like. I think she might be willing to front me the full purchase and rehab costs (up to $100k or +/-) for 8-10% with deferred interest for a 50/50 on any additional profit from a cashout refi. And (as I think this might be necessary without full seasoning) she's also willing to guarantee the loan. All of which is awesome.

But I also think she's going to want an equity stake, which is not my preference, as I'm trying to build up my own sources of passive income, and hope to create a portfolio that I will allow me to build something to help my daughter out financially when she gets older. But I'm not greedy and if she (my boss) is guaranteeing the loan, might even be necessary. So I am thinking, perhaps an equity split on the NOI for 3 years, and then another refi (after seasoning) to take her out of the deal?

Does that make sense? Is there a different or better way to structure this? I don't yet have a deal, but would like to come back to her with a proposal asap so I'm in a position to act when I get it.

Thanks for any thoughts!

Hi @Jesse Rivera I'd love to grab a coffee when you're next in the 'burgh! Even though I've lived here for about 13 years, I feel like I don't know this town. I'd love to get your take on it from the west coast. Keep me posted.

@Allan Szlafrok Thank your for your kind words! I am really looking forward to moving forward realizing this dream. 

@Elena Livins Thanks for the encouragement and the note! I certainly don't know enough about this yet to say yay or nay about starting off in NYC, but it would certainly require significant capital. I'm still learning the market here in Western PA, but everything I'm learning look good. And I look forward to hearing about how you progress, too!

Hi Community! I'm a newbie investor in Pittsburgh and thought I'd introduce myself!

I've had a long and successful career as a business analyst for IT departments primarily in the world of Finance, but I've had a long-standing interest in real estate investing. When I moved to Pittsburgh some 13 years ago from Brooklyn, NY it was with the intention of diving in. Fix and Flip was all the rage at the time and there seemed to be a lot of opportunities and I was eager to go. But within a year of moving, I developed cancer. A brain tumor, but before I had been able to get that under control, I developed a second immune disease, which almost took me down. I was in and out of the hospital for 2 years + and ended up with a bone marrow transplant which saved my life. 

Needless to say, this experience had a huge impact on my life: 1) It derailed my real estate dream; 2) It forced me to reprioritize; 3) It hastened a divorce (the sort of thing that brings you closer together or pushes you farther apart, and well...)

It took me a number of years after all of this to get completely back on my feet, but I've done it, and over the last few years have been finding my way back toward real estate investing. Though it has been slow to gain momentum. I left my job in Finance IT a couple of years ago and took one that got me a little closer, running operations for a small Equity Crowdfunding site for Real Estate.

And then I discovered Bigger Pockets, and I am starting to press the pedal closer to the metal. I expect I'll be posting and following a lot of you on these forums as I try to expand my understand and knowledge, asking for advice, recommendations, and information. I look forward to hearing what all of you have to say and am really looking forward to finding my first deal!

Thanks for having me!

Nate

@TJ Spence I'm in Pittsburgh and starting to take the steps toward real estate investing in the second half of my life (expecting to live to 100 (finger crossed)). I'm interested in the story of this apartment building in Homestead ended, or if you went forward with it. I've been exploring SFH as well as smaller multi-family.

I know this is an old thread, but the story is timeless. I am also in Pittsburgh area and while I have yet to get my first deal, my goal is to get it this year, and reading your story, Jennifer, is inspiring. And so a belated thanks for posting.

Caveat, I'm very new to this, so please forgive me if this question is confusing. 

I am working the BRRRR calculator and am talking to hard money lender about a loan for the full purchase AND rehab costs. But the report seems to require separate entries for these. I enter 0% down in the loan and the 10% interest, with points and other closing costs. And I enter in the rehab costs separately. And the report looks the way I expect, bundling my rehab costs and loan fees as the amount due at closing, But I'm concerned the interest calculation doesn't represent the combined costs. However, if I add the rehab costs into the loan amount AND also as the rehab costs, that definitely doesn't make sense.

However, when I enter the loan and rehab costs separately, the total cash invested actually does reflect my expectations, so maybe I'm doing this right and I just don't yet understand it.

Can someone help me decipher the BRRRR report vis a vis this situation? THANKS!