Real Estate Deal Structure(s)

[Haider Abdullah]

BP Family, Happy Veterans Day!

I’ve been flipping since January in DFW and have been playing with various partnership strategies aimed at finding the sweet spot.

I currently have:

80/20 with 1% on sale price

70/30 with 1% if greater than 15% net ROI

I’m also raising hard money at 10% for 6 months

And for a buy and hold, I just did a 75/25 on a quad. The 25% is my finder fee + management + rehab (75% is the bank)

I’m also trying to find the sweet spot for cash out refi. Scenario is:

Buy all cash under my LLC with investor money. Then follow BRRRR, however, how quickly can one take out cash out and repeat? Also, if under LLC, are you folks quitclaiming to your personal then getting the loan and then quitclaiming it back to the LLC?

All ideas/guidance welcomed!

So far into my 11th deal this year, have raised just north of $2M investor capital. Holding the quad for a BRRRR and also bought a traditional rental in Garland. All others have been bought to flip however, if I can figure out the right refinance strategy, the flips may turn into holds for me.

Thank you BP community!!

[Whitney Hutten]

@Haider Abdullah Nice work!  Here is a guide on how to use OPM for BRRRR (and accelerate the refi process). If you buy all cash, you will have seasoning of title. Also, as of today, you probably will have to leave more equity in the home than if you did a rate and term refi. Shop around. I normally get a fix/flip loan in the LLC, then refi in the LLC. I don't get into moving title by quitclaim (I've been advised it can cancel your title insurance... warranty deed keeps it intact in most situations). Good luck! Looking forward to what others say!