All Forum Posts by: Kevin Medina

Hey everyone - Kevin here!

I have been approached by 2 investors who would like to offer my company, SoFlo Flips, about $100,000 total in exchange for some kind of return on the investment.

My company and I have done about 6 fix and flips over the last 4 years and all were for a profit here in Boca Raton, Florida. I am the CPA and licensed Florida Realtor and my partner is the Project Manager/General Contractor. Up until now my partner and I just split the profits 50/50.

But now with 2 other potential investors on the horizon how do I make it fair for everybody?
Side note: These 2 investors only want to contribute their money and be a limited investor. Me and my company would be responsible for sourcing the deal, rehabbing the investment property, and then selling it. Everything from A-Z will be the responsibility of SoFlo Flips.

Hypothetically lets say that the profit on our next flip & flip is around $30,000 and it takes about 6 months total from the time we purchase it to the time we sell it. What kind of return would you offer the investors? 

Hey Lander,

Still plenty of opportunities in Palm Beach County! 

The good thing about Boca Raton is that there will always be a demand to live in Boca Raton in whatever market.

I would pull out just enough equity from your home to use that on a downpayment on another SFR. Find something that needs a little bit of work. A ugly house in a nice neighborhood. And then for the rehab, I would apply for 0% APR >15 months and use that card to pay all your labor and materials for the renovation. You'll only have a small loan to the bank and you'll only need to make minimum payments on your credit card until the time lapses.

Hi @Robert Kirkley, I am a CPA, Investor, and Realtor located in West Palm Beach, FL. I can work remotely with you through email if you need a CPA. Send me a message!

Investment Info:

Single-family residence fix & flip investment in Boca Raton.

Purchase price: $190,000
Sale price: $258,000

Bank owned property

Hi David,

I'm a CPA located in West Palm Beach, FL. I know that's a bit far from you but if you know how to scan and email pdf documents I'd be more than happy to earn your business.

Sounds like you have a "Good" problem. Whatever you decide to do is going to be a win-win. One thing I'd suggest is if you decide to sell it, consider doing a 1031 exchange to save yourself from paying tax on those long term capital gains.

Try teaming up with an investor that can afford the down payment and if you have good credit you can put the renovations on 0% interest credit cards then pay them off when you refinance or flip the property. 

I like the app idea.  How much does this post card service cost? 

One thing no one has mentioned is what happens to you if you successfully implement the BRRR strategy and now owned a handful of properties BUT because of competition in the area, a recession that tilts the bargaining power to the renters favor, or just bad luck with maintaining good tenants - you can't rent your properties out.

Now you're stuck with all this debt on your balance sheet with multiple mortgage payments due every month. How long can you keep this up without going under water?