All Forum Posts by: Nicholas L.

@Bob Stevens shouldn't beginner buyers work with agents?  Not necessarily to find deals, but to transact.  You're saying you're an expert and no longer need to - that's great.  But IMHO, OOS beginners should start out working with an agent...

@Angela Orecchio I'm not saying BRRRR doesn't work right now, I'm just saying that's it's difficult. I'm still glad I did my deal - I just needed the funds to cover the shortfall in the appraisal, which I had. I'm looking for my next one and hoping to improve! So that was my point - using partner money to do your first one seems risky to me because you'll be liable to your partners whether it goes well or not.

@Ryan Beckham yes:

-Save up some money

-Go to REIA meetings and network

-Call lenders

@Gina Shumway OK. No offense intended... but I think it's pretty difficult to BRRRR right now. You really need everything to break your way - you have to find a great deal, you have to have contractors ready to go, materials prices are up and it's taking longer to get everything, and then you have to refi with the higher rates that are available. I just finished one myself and I got everything right except for the appraisal - it was low and so I "left money in the deal." And I was able to refi at 6.5% which I don't think is available anymore.

So, I get nervous when people who have never done a BRRRR before are using tons of leverage, which it sounds like you are.

Just my two cents.

@Gina Shumway

I am just curious, have you ever done a BRRRR before? Or will this be your very first one?

And, I am not an expert in any of what you're asking, but a lot of it is going to depend on whether your partners want equity in the property or not.  If not, and they're just looking for a return on their money, it's going to be simpler - you pay them back when you re-finance, and they go on their way.  But, if you are all going to own the property together, it's going to be more complicated.  These are questions for an attorney and CPA.

@Angel Celis Lopez

will this be your very first flip?  do you have other team members lined up - contractor, agent, etc.?

@Ryan Beckham

awesome!  what are your questions?

@Gabrielle Reyno

OK.  Seems like you could learn together without partnering.  OOS investing is very difficult.

Just my two cents.

@Gabrielle Reyno

just curious - what's the impetus for partnering this early? 

@Account Closed

the only reason to buy in cash would be to make some kind of value add play - like buying a property in cash that is only accepting all-cash offers, fix it up, then refi to get your cash back. otherwise your cash is stuck. but having that much is a great way to make aggressive offers with no strings attached. you just need a value add and refi plan - like a BRRRR.