Structuring deals for investors return.

[Jordan Solomon]

You need 3 things for a deal; hustle, knowledge, and money. I am a newer RE agent who found bigger pockets at the beginning of this year and have really found a passion in the investment side of things, particularly the brrrr strategy. I don't feel confident enough to invest in deals just yet but through networking I came across someone who is willing to fund my deals once I am able and confident. My question is how do I go about structuring a brrrr deal to payback my investor and also make myself money? Is there even a middle ground for that or should I just hold off on my profits till my investor is paid back in full with interest? Hopefully this makes sense.

[Shiloh Lundahl]

@Jordan Solomon this is how you do it:

1. Find a property well under market value.

2. Buy it with your friends money or with hard money.

3. Rehab the property with your money or your friend’s money.

4. Increase the value of the home, yet make sure your “all in” is only 70-75% of what the increased value is now.

5. Refinance the house with a long term loan.

6. Pay back the principle and the interest to your friend from the refinance.

7. Keep the property and get monthly cash flow.

*I would suggest having a reserve of 20k or more if you are doing this on a house of 150k or less and having more for reserves if the house price is higher.