All Forum Posts by: Cassidy Burns

Hi BP,

I am struggling with the process of drafting a promissory note.  Do I have to have an attorney do this?  I have a few examples of notes that co-workers have sent me but it has all of their information on it.  Any blank templates out there that will suffice for a very simple transaction?

Thanks!

Hi BP,

I wanted to share my current situation. I have owned 1 3bed/3bath condo unit in Washington DC for around a year now, has been great so far. Rented it out for 6 months until my lease ran out, moved into the unit with a roommate, paying 2/3 of the PITI, and now currently exploring AirBnB for the 3rd bedroom.

I have been hard at work the past 3 months, closing on my first Duplex in my hometown Covington, VA.

-Purchase Price: $30,000.  Appraised at $43,000

-Two 2bed/1bath units.  1 completely renovated, 1 needing some TLC.

-Rented the first renovated unit out for $445.  

-Starting basic renovations on second unit.  Basic renovation, paint, replacing floors in living area and bathrooms, painting cabinets, decks, garage.  Going to cost around $5500  Still nervous and overwhelmed since I am managing contractors out of state

-That unit already has a lease signed and ready to go for April 1st for $500/month.

-Total Rent= $945.  

-Total Positive Cash Flow= $450/month.  Possibly a little more but going to make sure I build up a nice reserve for the "just in case" scenario.  

-Planning on refi in 8 months, ARV is Low End= $55,000. High End= $70,000.

ALSO, another single family home under contract in the same town. Covington, VA.

-Closing April 15

-Rent Ready, just need to get appliances.

-Purchase Price: $30,300

-Projected Rent: $625

-Projected Cash Flow: $278/month

-Zero $$$ down.  Investor loaned entire down payment and any rehabs that may need to be done ($10,000) at 5% interest. 

-Bringing Cash flow to: $225/month after interest payment

-Plan on Refi for appraised value of $50,000.  Pulling money out, paying back investor, and still cash flowing $200+/month with zero money down!

Thanks for all the help BP!  Many more to come.

Hi BP,

I am purchasing my first property with a partner, well hopefully! Have to get the offer accepted first. BUT, my partner is bringing the money for the down payment and repair costs, I am bringing the sweat equity, we are splitting everything in the property 50/50. Should we start an LLC for protection and purchase the property under that LLC? Any suggestions are greatly appreciated.

Hi BP,

I need help wording a pitch to a financing partner.  I have found a deal, sent it to a first time investor that is interested in getting into real estate.  I know each partnership is different and has different terms but how do I suggest exactly what I want the deal to entail?  This was his response after I sent him the deal and all of the numbers.

"How do you propose we structure the deal? Basically, if I put up the money what deal do we have?"

Thanks in advance!

Hey @Josh Gorokhovsky Thanks again for the great advice.

Welcome!

Hey @Josh Gorokhovsky thanks for the reply.  To answer a few of your questions:

I essentially will be the work horse:  Find the the deal, I have all of the contractor connects for any rehabs that need to be done, negotiating the deal, and managing the deal.

I do not have any of the money in the deal so how do you structure this?  There will be 2 investors bringing the money.  1 bringing $250,000 the other bringing $100,000.  Both want to have percentage of the profit.  So where do I fit in? 

33% structure? Including equity, cash flow, appreciation down the road?

Any other suggestions?

Hi BP,

I am in a good situation where I have 2 investors that are interested in purchasing buy and hold properties and have a large sum of money that they want to put to work.  I am having trouble structuring this deal, and pitching to them how I am/should be involved.  I am also going to be representing them on the buy side as I am an agent too.

Opinions on how I should structure this deal?  

Hi BP,

If you do not know the exact appraisal, and not many comps in the area for a specific type of home, can you use the tax assessment as the estimated value of the house?  What is the exact difference between the 2?  

Thank you!

Hi BP,

I closed on a Duplex today and tomorrow I am beginning my first rehab.  1 unit is rent ready and hopefully will become occupied in the next week or two.  The second side needs a little rehab.  I have the list of everything that I am planning on attacking and would love advice on what exactly is the best way of tenant proofing that specific material?

-Kitchen floor redone

-Bathroom floor redone

-Tearing up carpet in living room/stairs/hallways putt downing a solid flooring:

-Painting entire unit:  Color recommendations?

-Replacing fixtures in kitchen and family room?  Ceiling fans? (no central air)

-Mini blinds?  Supply them or have tenants bring own?

-light fixtures in bathroom

-removing fence in front/side yard

-removing screen doors on porch

Any and all material recommendations please!

Thanks