All Forum Posts by: Nicholas Lohr

I'd recommend Vinyl as well. Wood would be way more expensive. I have a building that was built in 1905 but the historical board wouldn't let me use Vinyl.  The wanted me to use wood but luckily we "met in the middle" and I was able to use Composite which is a bit cheaper than wood.  

You may want to make sure there us no historical board that is going to get involved in your windows.  And you are going to need a permit to change the windows, at least that's the case in my area. 

I'm smack in the middle of a new build right now in Sacramento, CA and we are at $200 per square foot easy. And that's me being the "General Contractor."

The "soft costs" add up quick! For example, I went to get the permit a few months ago and I expected them to say maybe $1 or 2 thousand.  It was $26,000!! 

Also it took a YEAR AND A HALF of permitting process before they would let me even start. 

Might not be the same for you but just sharing my experience so far. 

Feel free to message me if you have any questions. 

And don't forget to see if you need a GeoTech report, they didn't tell me I needed one which added another month of fun to the process. 

If he can properly support the floors then there are ways to even out the floors themselves.  I rehabbed an old Victorian house and I believe we used Ardex and it worked fine.  Google "Ardex floor leveling" 

You would then have to put new floors over the Ardex but new floors are usually part of a BRRRR anyway.

"What's a target percentage of equity to have in BRRRR deals?"

I'm not 100% sure what you mean here but banks usually lend around 70% of the After Repair Value. 

If you're talking about what yours or anyone else's "target" should be that's more subjective. I certainly didn't recoup all my capital out of my first BRRRR deal but I was totally ok with that because I still got a good amount enough for another deal, I wasn't over leveraged, and I still cash flowed on it even with the new mortgage's higher payments. 

It depends. I'd personally do that deal.  It's true that you aren't getting ALL your money out but you're getting a good amount and enough to pay for a large portion of another deal.  Do you have another source of income you could use to supplement the money you get out of that deal? 

Keep in mind that sometimes base hits are ok.   I don't know your market. Have you been searching a lot?  If so how does this compare to others out there? 

At the end of the day those long term return numbers are great. 

And as far as BRRRR in general make SURE these 2 numbers are correct:

1. Estimated Repairs: $85,000.00

2. After Repair Value: $290,000.00

Getting these numbers as close to correct as you can are key for a BRRRR deal.

I also wonder how they are getting past the SEC rules and the Howey test one this one? 

Regulation A+ maybe, but it's so expensive to run a reg A+ offering.  

these guys too...   https://www.meridio.co/

Here we go! (i guess?)

This company is slicing up commercial real estate and giving investors the option to trade it on the blockchain!  They are "unlocking liquidity" as they say.  

https://harbor.com/investors

https://www.bisnow.com/national/news/technology/no...

I'm curious what people think about this?  I personally could go either way but it kind of rings a bell back to 10 years ago.  (Slicing up mortgages and selling them off)  A new fancy derivative yes?  

How is Harbor going control the potential mis-pricing and mis-accounting of these derivatives so that they don't become the next "financial weapons of mass destruction" down the road? 

I own a building that probably has a market value of 1.2 million. But that is market value. I bought the building last year for 875k. What if I "unlock" the value at 1.2 million, sell it off, investors leverage it, everyone accounts and books the profits, and then the real estate market crashes?

And what if this happens on this scale? This is straight from the Harbor White paper.

This may be it, https://harbor.com/.   

But what these guys are messing around with makes me super nervous that they may become the next financial weapons of mass destruction because, after all, they are once again, derivatives. 

You are allowed to ask for the tax return for the property.  Much better chance that the true numbers are on there.