All Forum Posts by: Seth Scott

@Chris Mason thanks for the feedback, and I guess the key is just to provide as much info on comps and updates to the appraiser as possible. On the LLC thing I knew I'd have to be creative on how that is structured, and if I was an owner of the LLC that would be disclosed to the lender. There would be issues with having to realize the short-term gaining and count as income and all that also so didn't think was the best idea.

@Kenneth Garrett  thanks for the feedback.  I'll connect with you and I'd love to stay in touch with other investors implementing the same strategy.  

@Chris Mason @Mike H. You guys commented on this post about a year ago, and seemed to understand this issue more than many of the other responses. I wanted to ask for some input since I'm new to investing. I appreciate your input in advance! I'm a licensed Realtor in Utah, and this is my biggest concern with doing the BRRRR, and see this happen all the time with deals, but an appraiser will shoot for the purchase price almost always. I plan on using hard money or a private investor to acquire the home, then I have all the cash to do any repair work and pay interest payments on loan. I can even keep money if the deal if needed, but my concern, and what I see all the time is appraisers tend to target the appraised value at the purchase price, and I see it very difficult to get an appraiser to go 20% and especially 30% above my purchase and repaired costs for the refi.

I'm not totally sure the best way to structure this, but it seems almost helpful to acquire the property in the name of trust or LLC, and then sell it back to yourself personally at the price needed? This is what I'm caught up on, and would have to look at all the tax and legal issues with doing something like that. I guess my point is if I purchase and fix up, I'm much more likely to get an appraisal to come in at 20-30% above that value if I sell it to someone else (or myself/entity if I could structure it properly) at a higher purchase price. I see appraisals being too conservative on the refinance part of the BRRRR, regardless of the comps and cost of improvement I can provide to them. Most appraisers will take that with a grain of salt typically, and anymore I have no control over the appraiser so I'm stuck with whatever they come back with. Yes you can get a second opinion and fight it in ways, but typically that is very difficult.

So I guess I could always look at an exit strategy is just to turn around and sell it so someone else retail and make my profit at that point.  Then it's just become a fix and flip.  I guess on that point, without tying up a ton of my own cash, but are other exit strategies you might consider?  

I would recommend joining a real estate investment group as well.  There is a Utah County group and here is their website https://uvreia.com/.  I just joined the Salt Lake chapter. 

I would recommend joining a real estate investment group as well.  There is a Utah County group and here is their website https://uvreia.com/.  I just joined the Salt Lake chapter. 

I've owned a successful insurance brokerage for 11 years, but have landed back in real estate.  My Bachelor's Degree from the University of Utah is in Finance-Real Estate, and so it only made sense to get back into.

I focus on residential real estate on the retail side helping clients buy and sell homes. Primarily in Utah and Salt Lake Counties, but also in the surrounding counties.   I'm also a partner in a new investment company that we are looking to build a portfolio of long-term real estate investments.  The partners and myself have extensive construction, law, and insurance backgrounds so we will also be doing some flip projects.  

So on the real estate side I have homes that I come across that will be great opportunities to investors, but our real estate investment company is also in the market for other properties both for long-term investments and flips.  

I look forward to networking with other real estate professionals out there, and look forward to being a valuable resource to other real estate investors as well.  

I'm new to flipping, but have owned a business for 11 years so know the importance of very good systems and tracking.  So I have not used it personally besides the demo, but have spent a lot of time finding an all encompassing solution, and the easiest one I've looked at that offers everything to manage and analyze a deal, and is very affordable is http://www.houseflippingspreadsheet.com/.   It will give you an idea on actual rehab costs, but that part you'll have to use experience, subs, or other resources to nail that down.  However once can nail down the actual rehab costs it has everything else to manage and run your numbers.