All Forum Posts by: Jack Plantin

@Jack Plantin we started by looking at areas where we could get high rents with low purchase price. We wanted to buy and rehab with cash (my partner and I split 50/50) and we were set on BRRRR technique to build our portfolio. We actually signed up with a lot of turnkey rental companies that sent us turnkey rentals in the midwest (again, best rents with lowest all in costs), and used the areas that they sent us as a starting place. we narrowed it down further by looking for residential areas outside of major cities, within 30 minute commuting distance, and then narrowed it down even further by only looking at city suburbs that have great school districts. After all that, we had 3 or 4 towns that we really liked, and just started networking with professionals in that specific area.

Ultimately we used the turnkey rental companies to show us where in the midwest that the rents were high and the costs were low and we just narrowed it down from there.

Our deal finder is different from our broker. our deal finder is also our project manager; our broker was there to help us with the remote closing and we were able to negotiate her commission. she also gave us connects to contractors that she likes. Our broker also runs a rehab oversight company that we used (she and her husband have construction background), which mediates the rehab with the contractors and follows up weekly to make sure the scope of work is actually achieved, sending us pictures and verifying everything is done correctly and timely. HIGHLY RECOMMEND THIS if you are doing out of state flipping/brrrring.

Also definitely recommend the long distance investing book. he gives you step by step instructions how to build a team at a distance and outlines exactly what to say to who in order to get the maximum results. 

Good luck and let me know if i can answer any other questions!

@Jack Plantin He gets cash flow and then when we cash out, he gets his money back but still gets the cash flow.  He gets lifetime cash flow for a short term loan.

It sounds like you just are not confident in your ability to get a good deal for them.  If God came and said to you, "Hey Jack, buy this property with your friends money, he will get a 10% return... would you do it?" 

These are all great questions.  The reason why I needed to cosign was I have a W-2 job and he is self-employed so it was difficult to get the loan during covid-19 as restrictions tightened up.  He gets 50% of the profit, I am doing all the work when it comes to managing. Does that answer your question? 

I am curious why you don't want your friend who is willing to hand you money to purchase a property help you? Is this something you are scared of?

@Jack Plantin I did a cash out refi of my primary so obviously some costs there for the initial cash. No issues with the conventional loan but I was right at that bottom limit of what they would lend on.

It’s crazy looking back how it all came together; definitely not perfect but I’m glad I had relative success for my first one as it gave me the confidence I need to push ahead!

Bought my first investment property last September in Pittsburgh, PA. I reside in San Diego, CA and never set foot in Pittsburgh so it seemed a little weird.

Details:

SFR 4/2 on the MLS

Asking: $50K; Offered: $40K And ultimately agreed and purchased for $44K

Used conventional financing with 20% down

Rehab cost was $36K

Total money in including rehab, down payment, closing costs and holding costs: $55K

Rented 4 months after purchase for $1275

Refinanced into a new 30 year fixed at 4.5% and was able to get $53K cash out after an appraisal of $125K

Currently looking for the next deal to finish out the "Repeat" phase of the BRRRR; hence the almost.

Definitely learned a lot through this process everything from financing to working with contractors to property management companies. Biggest piece for me would be perhaps developing a contractor agreement on my end that could have prevented some hiccups down the road; ultimately the work was done well but drawn out and demands for payment outside of the quoted schedule.

I’m looking to use hard money for my next deal in order to learn the ins and outs of doing so.