All Forum Posts by: Adam Reynolds

Got it, thanks Dan. 

@Dan Gamache

Do you lend to individuals or only LLC's?

@Russ Marlborough

Bunch of good advice in the thread already, but I haven't seen anyone mention that you can actually challenge the original appraisal. I just did a BRRR where the appraisal came back at $115k when we were expecting close to $135k. The five comps he chose were awful (way smaller, not upgraded, different zip codes, etc.). We respectfully wrote notes on why they weren't the best comps and sent him 5 others to consider. He replied within 24 hours with a new appraisal of $130k. This is definitely worth trying if there are more accurate/higher comps in the area that your appraiser didn't factor in. Good luck.

Personally, I like the smaller shops better for SFR's but it's hard to make a blanket statement like that. I think you have to evaluate your options on a case-by-case basis. Whether it's a large firm or boutique shop, you want to find a PM that values your business, is trustworthy/has your best interests at heart, and is responsive to your needs.

@Robin Hunter and her team at Hunter Properties are great. Reasonable fees, very professional, timely responses, etc. Highly recommend.

My partner and I are BRRR investors in Kansas City (MO and KS). We are looking for an investor friendly bank that offers fix and flip/bridge loans or a line of credit to fund the purchase and renovation of SFR's that will then convert to a 30 year fixed loan upon rehab completion and rental stabilization. We are high income earners and happy to place funds on deposit with the right bank. Looking to build a long-term partnership and complete many future transactions. Does anyone have any recommendations for us?

Thanks in advance for your help!

Awesome, thanks @Michael Ablan

Thanks @Jay Hinrichs. Much appreciated!

Thanks for the feedback @Jay Hinrichs. How would you recommend structuring a formal secured transaction if we go that route?

Happy New Year BP friends! I have a question regarding private money loans. A 50/50 partner and I are purchasing a BRRRR property and a third party (mutual friend) will be lending us the funds for the purchase and rehab. The friend will be a passive debt partner only (ie we are not offering him equity) and we plan to return his funds + interest in 7-8 months. This will be our first time using a private lender so I'm curious what the easiest and best way to structure the contract is? Should we give him first position lien in case something goes awry? What pitfalls should we be aware of? We want to make sure all parties interests are aligned and protected. Any advice you can provide would be greatly appreciated.

Thanks BP!