All Forum Posts by: Nicholas Lohr

There's a TON of money out there from people who just want to invest and have someone else do all the work.  Your contention here, "Everything I would have to offer they could hire a management company to do the same" is work, you'd be surprised how little people want or have time to do.  Think about a full time doctor, tons of money and zero extra time.  And the management is only one piece of the work anyway, there will be more.

Anyway as far as "how is this possible" as you say, the only way it is possible is if you have a documented track record of solid results with years of experience and a business infrastructure. Once you have those things then raising money becomes very possible.

If you are in the beginning stages then you're best and probably only bet to raise money would be from family or close friends. Choose very wisely though! You don't want to loose a friend if something goes south. And get a securities lawyer to make it legal. Good luck.

I don't think the spread between the original purchase price and the ARV is wide enough. As in you're not leaving yourself enough of a margin of safety there. If that renovation budget goes over, and it always seems to, then you're not going to be in good shape.

Also I see you are in NJ and this is in Florida. If I wasn't present almost every day for my first BRRRR deal, especially during the Rehab phase, it would have been a disaster. I know NJ may be too expensive but can't you find something within a drive from where you live?

That's exactly what I mean Bill.  So after after the fresh appraisal and the new loan is issued I can change the value of the Fixed Asset on the Balance Sheet?  I wasn't sure if you weren't supposed to do that.  For example, let's say I got the official appraisal but then didn't decide to get the loan for whatever reason.  Could I still change the value? I'm assuming not!  I guess my ultimate question is WHEN does the book value of an asset really change? When the REFI happens, when an "official" appraisal comes in, when the new loan is issued, or when's it's actually sold?

Say you buy a property for 200,000 and then you fix it up and REFI it at a valuation of 350,000, pay off the old loan with the new loan capital and and have a new loan etc... the BRRRR method.

Did the "book value" just change or the "market value?"  Or both?

Over the long haul the stock market returns about 7 to 10% so he is choosing a number higher than that to make the real estate investment worth it.  He is saying why go through the hassle of a 9% return real estate deal when he could just put it into a no hassle stock fund.  I don't know why he picked 12% specifically, just his benchmark I reckon. 

I used US Bank for my first BRRRR deal. I would not use them again. I can't remember the specifics but I do remember being frustrated and the process took forever.

The BRRRR calculator takes it a step further and shows the results you get all the way until after the refinance. It takes into account the repair cost, the holding period, and the after repair value. It also factors in both loans, the loan before the refi and the refi loan.

Thanks for the responses.

The reason why I'm asking is I was thinking about developing an App for this as well.  In this here age of the smartphone I would think it would be attractive, and almost expected, for investors to be able to track and check their investments at the click of a button just as everyone can with stocks, online banking, etc...

@Brian Burke was this a white label product or did you guys hire developers and have it custom made?

Do any syndicators out there offer electronic Apps or a website for their investors so they can track their shares and their return results?  So they can check in to whenever they want to see how their investments are doing?  If not, then what do you use? 

I am trying to build a free standing duplex in the back unused part of a parcel that has an old historical landmark building towards the front it. 

Attached and already existing to the historical building is an addition that was built later than the original historical part.

In Sacramento there is an ordinance that says any new building must be 40 feet away from the historical landmark.  This ordinance is the last hurdle I have to get past in order to be approved to build.

If we have to measure the 40 feet from the edge of the addition to the historical part of the building then there is no project.  If we get approved to measure from the ORIGINAL historical structure then there is more than enough room.

Can I argue that the 40 foot measurement should be taken from the original building rather then the edge of the whole structure which would include the addition?  Does anyone have any experience with this?