All Forum Posts by: Ryan Weimer

@Syed H. no he is not.  This is a new partnership so we wouldn't have a track record under a new entity anyways...

I don't see what that would have to do with the rehab funding vs. non rehab funding HML's?

Seeking some advice on a partnership using a hard money lender...

I'm going to fund the purchase price (via HML), while my partner will manage and fund the rehab out of pocket. Strange thing is some of the HML's are requiring he be on the loan and I don't understand why... This complicates the partnership as it dilutes the value I can bring by assuming the risk.

In my experience so far there are HML's that also fund the rehab and some that do not, so how is it any different in underwriting's eyes if I just never take a draw with an outfit that includes the rehab funds? This seems arbitrary to me...

Thanks in advance, really appreciate anyone that can add some insight here!

@Jonathan Pflueger I'm currently looking into some land/development plays in Garden City - would you be able to share your findings and potential challenges?

@Matthew McNeil appreciate your comments - I do have a lot to learn. I am investing in Boise for the appreciation by seeking value add opportunities to BRRRR, so a little different model. In 6 months we will be able to pull out a HELOC and recycle the cash to purchase the next one. In my early stages snowballing leverage to scale faster is more important than a couple hundred dollars a month cash flow. I don't believe Boise is the right market at this time if looking for cash flow, but it is a gold mine for flipping/appreciation plays.

In your example of 220k with 20% down I am showing -$30 cashflow with same numbers, and also wouldn't have any equity to tap for a HELOC.

Sounds like you have a keen eye for the details, which I very much appreciate.  Let's connect, would love to chat about future prospects and your experience.  I'm sure I could learn a lot!

@Matthew McNeil it was not limited to the kitchen - for some reason the BP post limited me to 6 pictures.  I can send you more if you'd like to see!

Rent is $1500 and cashflow estimated $30/month - keep in mind this was an equity play for us and we plan to HELOC this summer or next. We want to build equity first before transitioning to a cash flow model down the line.

ARV is about $245-250k as of today so about ~30k equity netted in this deal.

Investment Info:

Single-family residence buy & hold investment in Boise.

Purchase price: $205,000

Cash invested: $13,500

Our first BRRRR property in Boise! Occupied within 2 weeks with fantastic tenants!

What made you interested in investing in this type of deal?

Boise fundamentals and high potential for equity/appreciation growth with value add

How did you find this deal and how did you negotiate it?

on the MLS, was previously under contract but came back on for 24 hours after trace amount of mold was found, which spooked the original buyers

How did you finance this deal?

conventional, 20% down with a partner

How did you add value to the deal?

$13,500 in rehab. Mostly cosmetic with cost effective touches to the bathrooms and kitchen to improve aesthetics

What was the outcome?

30k+ immediate equity created, rented within 2 weeks of closing to high quality tenants

Lessons learned? Challenges?

Was rejected on quite a few offers before but was opportunistic and stuck to the process

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes! Corby Goade with Boise Turnkey and Heather Eshelby with Cohesion Properties

I'm a CA resident, my investment partner is a CO resident, and we just bought our first (of hopefully many) rentals in ID and potentially other states.

Given i am a CA resident, it sounds like an LLC isn't practical given the $800/yr franchise tax so a DST or an individual umbrella policy is our best bet. I'm really having trouble finding sufficient detailed information or legal representation that has experience here... Anyone have suggestions?