All Forum Posts by: Braden Klope

Is it normal for a bank to require blueprints and quotes from a GC of your proposed renovation before lending money?

This is based on a possible purchase price of a single family home for $60K and Reno cost (rough estimate) of $60K.

Total transparency: This is going to be our first real estate investment property after about two years of financial and real estate education and preparation.

Any opinions are welcome!

Hello,

My wife and I are currently looking for our first investment property for our future real estate goals. We recently came across a property that is in need of extensive repair and seems to be scaring off the competition in our area. (And making their bank loans difficult to acquire)

It is a 60s 2 bed/1 bath on 1 acre and would be a complete gut job with a possibility of adding a bathroom and/or bedroom depending on how it perks.

We are interested in treating this as a BRRRR deal, and have called and toured the home already.

My question is: The agent that showed us around the house is with the listing agency. Is there a conflict of interest with using the same agent who has interacted with the seller many time on other offers to make our own offer?

Would there be a bias, somehow?

Is there any foreseeable reason we should not go directly through this agent and have another agent to represent us as the buyers? (Especially since we plan on making a fairly low offer)

Thank you for any insight,

Braden

*I'd like to preface this with stating that I have not personally found my first investment deal yet, I am just actively searching/continually trying to learn.*

I am about to form my own LLC to protect assets and help organize financing for loan/tax reasons, and my thought process behind funding all business costs is this:

• I will open a business checking account with my local bank in the name of my LLC.
• All profits from any investment deal will be deposited there first before withdrawing my own "salary" or living expenses out. I feel like that would help a lot during tax season and also give me more organization with any business transactions that occur.

As far as funding the first deal with your partners' money, I would expect that it would work in the same way: to pool all money equally in the business account to fund the project (at the beginning of the deal). That way there is a record of everything and you don't have to worry about one of the guys refusing to pitch in his 1/3 three months down the road when the reno is going full-force.

P.S. If there is a serious flaw in my thinking, please feel free to point it out to me, as I am always open to constructive criticism in this area. 

@Shiloh Lundahl

I am currently reading Robert Kiyosaki's Retire Young Retire Rich, and he would categorize that in the "Affluent" bracket, with Rich being next once you have a yearly income of $1,000,000 +.

Hey Teresa, although I live in Lebanon ( about 20 miles east of Nashville) I needed to know the floodplains in order to avoid flood insurance as well. Here is a helpful mapping website we used when buying our home: http://maps.nashville.gov/FEMAViewer/

Braden