All Forum Posts by: Garrett Gahn

@Stephen DeThample Thanks for the tip! I think finding the balance between over improving for the area vs. using updates to optimize sales price is kind of where I am hovering. 

@Jim K. I totally agree when it comes to the expectations of ARVs. Since it's where a lot of the desire/sparkle of the deal really resides, it seems that a lot of investors (especially newbs like me) can inflate and not stay conservative/honest with their numbers.. exactly what I'm tryinggg to avoid. 

I really appreciate your insight on creating a range. It makes a lot of sense to create conservative and aspirational numbers instead of feeling like I need to pin point a specific figure. It helps relieve some apprehension/fear with the deal as well. 

Ill check out James on YouTube, thanks again Jim!

@Alex Uman  I think you're right.. ultimately it is a step into the unknown. I think being extra conservative with my numbers, especially on my first deal, will help limit my fear. Thanks for the insight! 

Hey BP,

As I continue to practice analyzing BRRRR deals, I'm finding that I feel great at every stage except truly feeling confident with my ARVs!

Although I run my comps, research recent home sales, etc.. I feel as though the comparable properties in the market I am investing in ( a very beautiful but also very rual area of the midwest) are almost all outdated when it comes to layout and design. When I look at my rehab estimates, I always favor much more modern design details than what is seen in the area. 

Am I seeing an opportunity to breathe a little life into the real estate market or should I be weary of just how well an "aesthetically pleasing" property will perform when estimating the ARV?

Hope I'm making some kind of sense.. thanks for any advice! 

Hi BP nation!

I would really appreciate some guidance on a current deal that I am trying to work out for my mother. She has acquired a property passed down from my grandfather that is fully paid off but has been left in absolute terrible condition from the previous tenants. Her initial thought is to fix and flip and apply the profit to another rental/airbnb property closer to where she lives and can manage easier. I may also advise her to simply rent the current property after the rehab. 

I want to take this completely off her plate and manage the entire deal for her. I am not after any personal financial gain.. the experience alone would be where the value resides with me. With that said, I have a potentially great network of private capital investors in the form of friends and clients over the years that I believe would have capital to invest into a deal with the right numbers. 

My question is this.. (finally).. What is the best deal structure for private investors if we are to fix and flip the property but have no capital of our own for the rehab? Is this usually in the form of a loan for the rehab costs, or a split in the profits after the house is sold?  

Thank you!! 

G