All Forum Posts by: Bryan Kunka

Hey all, question for all the real estate brokers out there.  If you have a real estate brokerage but you aren't using a big name to back you up (ie: Remax, Century 21, etc)...when you are flipping houses, do you feel that your unknown brokerage name impacts things like appraisals, inspections, permits, etc?

I am pushing my partner to get his brokerage license, but he feels it may adversely impact the fix and flip business.  Since the broker name would be unknown, he feels it will bring extra scrutiny to the process - I don't buy it, but wanted to see what you all think.  

Any feedback would be appreciated.  Thanks!

Hey Mark, I came across this same company recently.  Just curious what you found out about them?  Did you decide to work with them?

I would still love to hear from the BP audience who is working in Detroit.  Just curious what area's area hot and what you see as up-and-coming.

@Jeff Rabinowitz thanks for the reply. I went to the Renegade in November and it was a great night.  Hopefully I will be able to make January's, if so, I will be sure to stop by and introduce myself.

Would love to hear from anyone that went through and started the fund.  Pro's & con's and if looking back you would have just gone the direct relationship route instead of setting up the more formalized approach?  

I imagine its much like a private company vs a public company.  The private company has lots of benefits and freedoms, but the public company is stricter, more formal, but also has a legitimacy that helps out tremendously.

@Arpan Patel Solid point about institutional influences. I would say we are more surrounded by wealthy non-institutional individuals. That said, my question for you is if I can round up "x" amount of investors (regardless of their background), should I look at the amount they can invest as a driving factor regarding which structure to use?  ie: If the average amount raised is $50k, then we have to go the fund because $50k won't cover the purchase and repair costs of 1 property.  

However if we find that each person can put in $500k each, in your opinion does the fund itself have more direct benefits than setting those investors up as private lenders?  Thanks for your thoughts and feedback!

@Levi T. Thanks so much for sharing this info, it's incredibly useful. As mentioned before, our funding has been from family, so I am working to figure out a tried and true structure & approach for private lenders - so this was great insight. In your scenario, did you find that creating a fund had a bigger downside or did the LP approach just have bigger upside? Trying to figure out if the private lenders was legitimately better or if you just came across too many hurdles trying to raise the fund, so the private lenders won by default?

@Tatiana Gershanovich  I don't really know anything about rules 506 (b) or (c) so thanks for pointing me in the right direction there so I can do more research. My goal in general is to do as much research as possible on my own before getting the legal folks involved.

@Ned Carey Thanks again for your feedback and general guidance - it is exactly what I am looking for from this post!

Hey all, would love to get some feedback from Detroit fix and flippers that have done lets say 3+ residential projects in the city in the last year or so.

Curious if you are only working in the stronger parts of the city (Boston Edison, Midtown, Indian Village, Corktown, Palmer Woods) or if you are going outside of those area's?  And when I say outside of those area's, I literally mean like a block over. Also curious if financing has been an issue for your buyers?

I feel like Detroit is going to be a strong bet, but curious where my Detroit flippers are betting on currently.

Side note, I feel like every Detroit post is followed up with a response that says stay out of the city. I'm not looking for that feedback. Definitely aware of the situation, but want to start a dialogue with people that are currently flipping in the city.

Thanks all!

Ned, thanks for the feedback...I really appreciate it.  

Our money situation isn't scalable because its family money and a good portion was just invested into a long term play.  So in lieu of slowing the flipping business down, we want to raise more.

Your point on keeping the capital deployed is definitely something I worry about.  I feel as though there is enough opportunity out there right now, that keeping the money in play shouldn't be an issue (we are actively turning down projects due to our current capital constraints), but once you have the fund raised, that comes with a lot of pressure to get the capital working.

So if I am picking up what you are throwing down, you recommend going with many private lenders.  Is that correct?  If so, any thoughts or recommendations on 1 private lender per deal or multiple private lenders per deal (which feels messy, but its unchartered territory so I want to ask).

And to the rest of the BP community, definitely open to continued feedback on this topic as well.

Thanks all!