All Forum Posts by: Brianne Leichliter

Hi @Tiffany Alexy!  I'm an investor and agent here.  Would love to network with you if you're interested!

Hello BP fam!

I have a situation where I have a "partner" who is my private lender. Neither of us have any interest in being under the same LLC. We act independently but have a business relationship. He finances the properties 100% with a mortgage, I usually finance the rehab or a portion of it and do all of the property management, etc. This arrangement has worked out fantastic for us.

I'm running into a snag with a refinance because of the "skin in the game" situation banks like to see.  To get over this hurdle, I'm looking to write a business agreement outlining the strategic partnerships between our businesses.

Has anyone ever done this?

I have an attorney that I'll be working with on the draft. I'm more interested in the feedback on those who have had this type of relationship and if/what you've documented.

@Melissa Perez If you're interested in Cincinnati, I'm a subject matter expert here as an investor myself and can make some recommendations.  There are solid C neighborhoods that will fit your criteria and budget, and some B neighborhoods as well.

A good tool that I personally use is www.niche.com to look up market statistics.  I found it valuable when I was an OOS investor myself to help me get a general sense of the neighborhoods before I had a boots on the ground team.  I refined that data with my team once I developed my core 4.  As you can imagine, some neighborhoods still have pockets of areas to stay away from.  Having those eyes locally in the market is helpful.

@Chad M.  I invest in Cincinnati.  I love the market here.  There is a wide variety of properties that are still affordable and cash flow well.  Property taxes are high, I agree.  Depending on what you buy and what type of rehab you do, there is the option for tax abatement to try to keep the property taxes down.  Cincinnati provides that incentive.

In terms of single family, there is still a good amount of inventory that you can snatch up.  I can recommend a few neighborhoods in Cincinnati if you're interested.

@Angel Galan I am an investor in Cincinnati as well as a Realtor.  I'd love to answer any questions that you may have as well.

@Bradley G Fagg I agree that this is entirely by location.  I'm not seeing the need in Cincinnati to drop rents.

There are still plenty of working/paying tenants looking for a nice place to live.  I raised rents from $350-$650 and did an eviction in the middle of the CDC moratorium.

@Elijah White - Good to hear you're putting some money back. You should have three reserves - capex, repairs, and vacancy. And yes! That's the article I as referring to on calculating CapEx.

Reserves are meant to just be held in a savings account for the unexpected.  I can see if you're just starting to rent them out that you wouldn't have a nest egg of these items built up yet.  Sewer scoping is definitely a good idea!  A lot of these items should have been discussed during a home inspection in term of age of some of the items. I always find it is better to try to negotiate some of the repairs/capex in the deal if possible (or cash at closing to be able to do them immediately) than to take a price reduction. Eliminate as many of the potential issues up front.

@Elijah White Oh repairs!

What are you reserving each month for capex and repairs and how long have you owned the property?

Also, did you get a home inspection on them?

As you go, you should be making adjustments to increase your capex and repairs reserves.  There is a good BP article for capex.  Sometimes throwing a percentage at it doesn't make sense if some of those items are near end of life.

@Sara W. With OOS investing, depending on strategy, your returns can be greater than 8-9% if you factor in a long term hold and appreciation on top of your cash flow.

Turnkey rentals usually have tight margins, and I don't recommend those to newbie investors. Sure it is easier, but it's not necessarily the best ROI. It's entirely dependent on the comfort level for the investor, and like others have said, it depends on what makes sense for you personally.

I have investors who have no interest in doing rehabs or even owning properties.  They would much rather invest in notes for what they consider a "safer" investment.  It's very customized to the person and the goals.

Hey BP agents!

If you are a KW agent and attending the Virtual Family Reunion this weekend, I'd love to connect with you at the reunion!

I am specifically looking for an agent to refer in the Greensboro, NC area that is an investor friendly realtor that I can send some business to.

But I want to network with you all!