All Forum Posts by: Daniel Jewell

My brother and I have owned a home for a bit over a year., purchase price was 121k with 116k remaining on the loan. We rehabbed it and are currently renting 2 rooms out and living in the 3rd which makes our monthly expens 1/3 utilities. We think the home is valued at roughly 180k based on neighborhood value.

During the week we work for a real estate agent/investor. We manage flips for him and in return we get 10% profits and $25/hr. We've been doing this for about 7 months after quitting our jobs. My brother and I have been completed 3 flips with him however due to Coronavirus and other unforseen events none of them have sold yet.

In the past our agent has offered for us to put our own liquid capital into the deal for a higher percentage but my brother and I feel it might be time to leverage our own asset so we can take higher profits on deals ourselves. Or perhaps house hack again with a higher end property.

The question I'm asking, are there any loans that we should look into given that we are not W2 earners? Or refinance options that we should look into. We have 20k liquid and 25k credit cards. We both have a credit score over 750. Or should we just keep working with the investor and building our liquid savings.

There are also some private investors who are Family friends who'd like to partner with us more to give us a leg up. But they don't wanna spend that much for our first deals together. In other words we potentially have access to an additional 75k of liquid capital.

Hi everyone! My brother (Devin) and I feel as if we have lost momentum and want to get on with the next step. We were hoping BiggerPockets could help us see what we need to do next. I'm going to try to give all the information best I can.

We bought home from HUD in Madison va a little over a year ago for 120k. We rehabed and think it's new value is about 185k.

monthly costs:

Mortgage $950 (tax, insurance)

Electric $190

Internet $70.

I live there but have rented out the other two rooms for: $475 and $450

Plus 1/3 of the utilities. Witch make the out of pocket costs for that property about $150

including a very small cap-x

About 7 months ago my brother and I quit our job to work for a real estate investor. He pays us $25/hr (witch was more then what ether of us were making) and 10% of the ending profits of any FLIP we do. We don't need to do anything apart from do the work.

We manage the hole thing from start to finish. So he is not really involved unless we have a question during the rehab process. he handles the buying and selling.

He also owns a lot of other rental properties and has us do maintenance (roof replacement new flooring ect) in which we do not necessarily like because it take us away from the flip and the potential 10% of profits.

We live in Northern Virginia. Now meny of you may no that this is a expensive place to invest. The investor likes to buy homes for first time home buyers. So this means purchasing homes under 55k-ish

With that being said that means my brother and i have been driving A LOT! we have done 4 flips for him all at least 6 hours away. we stay at the flip on a cot mday though fday and drive home on weekends. We do all the work for 25/hr

It typically takes us less than 2 months to complete a flip

This is the address of the first one we completed. 111 Culver st tazewell va. (none have sold)

We're now in Raleigh North Carolina trying to finish up a flip.

He has told us once we gain enough capital to where we're comfortable putting that money towards a flip and partnering and getting a higher percentage and forgoing that 25/hr rate.

We also have 2 family friends that have expressed interest in helping us out

One is MrG the other is MrS

MrG has said he'd be willing to partner with us AND only us, up to 75k (but we will see)

He is very well off but is not exactly a W2 earner.

MrS has not committed to a number but when we talk about the first time home buyers market he's been receptive.

He works in tech and runs a business and W2s himself. He will not invest unless we operate under a llc. We think this is because all his funds are in his llc and a loan to another business is simpler for him. We have one but haven't holy operated under it.

My brother and I together have about 18k saved

And about 20k of 0% interest credit for the next 14 months

Were trying to determine what the best path is for us moving forward.

Should we continue with the investor? Witch he does not have another flip lined up after this one that should be done in the next 2 weeks. Witch would mean we would be hustling for handyman work, tree job, until he finds another flip.

Or should we really try to make something work with what we have (we don't really know how)

We kind of want to keep the first house but if it comes down to it we might consider selling. And we haven't been able to find financing with the history / nature of our income but we'll keep looking.

Or try to make something work with MrG/S (we kinda want to do something without the first investor)

We were kinda of thinking about doing (but please come up with your own opinions thoughts solution.) :

We try to find a property with a purchase and rehabs under 80k and have MrG/S cosign for a cash out refinance, if they'll go for it.

Or buy a higher end property and have MrG/S cosign and put down 20%, then rent it and then sell the one in Madison using the profit to pay MrG/S back.

Please give us your thoughts

Thanks Daniel and Devin

@Jaleel Phillips I live in a 3 bedroom 1 1/2 bath home and have 1 long-term renter. I just figured I'd post stuff on Airbnb while I wait to get the second rented off Bnb.

Thanks for sharing

Hey everyone, I just had a pretty negative experience with a long-term Airbnb renter. The renter was just overall disrespectful of the space and took advantage of things where they could there's a lot more to it than that but I'm trying to keep things short, Ish.

I have a folder of basic House Rules like a lights out time and we all should be aware that sound travels, basic stuff.

But one particular thing that urged me asking her to leave was I came home from a real estate job around 2am to a pot on the stove that was at a rolling boil and a pan in the oven, meanwhile she is asleep.

Going off this it makes me feel like I need to put a rule down for every little thing even though it seems common sense not to leave cooking food unattended.

Does anyone have any advice for some house rules that they have created that they would like to share? It would be much-appreciated to have any feedback

@Devin Duval

then do the ABnb to get used to the idea of other people in your home and then if you don't mind get a long term renter in there. the income from the Bnb would help you get that debt out of your life so you could put that money to use.

that's a really easy step you can take that will give you a lot of transferrable experience 

@Charles Moore 

If you have a bit of land and a big driveway you could rent out parking spaces outside.

I wouldn't restrict access.

Look at a local big box storage places. be like you want to rent but you want to be weird and read the terms and conditions first, they've already thought of it.

If your garage only has 1 door then I'd still put up drywall. Its what 10 2/4s and 4 sheets drywall.

@Edward Kanive

That's absolutely fantastic that you make so much money i would love to have that kind of tools to use.

my first thought when reading your post was that you kinda see the homes as a personal possession, not as a tool to make you money.

If it was me i would try to not use your personal money to MAKE a house profit. While having your income as a fallback is nice I don't think it puts you in the right mindset to get back more then you put in.

I would take all that income find a full-time investor and buy properties off them with the intention to rent them and maybe have that same investor manage them. If you only make $100 or $50 per month after tax, cap-x, management fee, insurance and a dedicated amount set aside for every expense attached to it life span, so you have a budget for everything so basically you don't ever need to put your money into a deal after you buy it… EVER

And you just keep doing that until you die and then your family is left with the problem of spending the CRAZY amount of MONEY you left them.

If you want to do anything you need to take action right NOW. set a goal and deadline and MAKE it happen. Otherwise, there's always going to be something else, or a why “not” right now.

If it was me, to start i would try to rent out the extra rooms. maybe consider using ABnB to get your feet wet.

if you want something long term then look at TransUnion smartmove for your background checks.

see if you can find a landlord near you that'll give you a lease agreement, but look into some real legal counsel.

also... i HATE HOAs. if your not a dick and you take the time to make the space look better, if renting is not liked they might let it slide... but check the rules, they might not have anything against it  

vid: How to Clean a Dryer Vent using the LintEater Rotary Cleaning System

maker: NorthlineExpress

I was a chimney sweep for a number of years and in this vid, I'm linking, it's pretty much the same way we did it from the outside.

We turned on the dryer

went outside and used a drill and used a brush similar to the one in the vid.

We moved the brush in and out (while attached to the drill on mid-speed) till no lint was blown out by the dryer

When attached another extender (one at a time) till we hit the dryer



and that's it

hope this helps