All Forum Posts by: Kyle Daniels

@Mary Jay

I am not a lawyer by any stretch. The series LLC was brought to us by our highly recommended lawyer when we were establishing a structure for our investments. I did some research on my own to get more familiar and with everything said and done I feel very comfortable with it.

There is no doubt being the "newest kid on the block" that there maybe legal aspects that need to be worked out down the road in general, but for us the freedom that comes with it makes it worth it.

@Ross Dallas

Working in MO here, we set up a series LLC, primarily because of the flexibility it gives with Bank accounts, moving money around, and legal protection. Makes the process super simple.

The only downside with the series is educating others. We ran into an issue where our bank didn't know or understand the Series. They are a great vehicle for real estate but apparently not everyone knows about how they necessarily apply to real estate.

Whatever you choose I would not do anything without an attorney. Ours has been huge with educating us and others.

@Blake Dailey

Does the bag of cash need a big "$" on it?

Seriously though this seems shady, definitely would need to get advice from an attorney before moving forward.

I can appreciate trying to mitigate taxes, but if they are willing to belatedly lie about this process, what else are they potentially not telling you.

@Whitney Hutten @Alex Olson

Thank you for the insight. I was able to talk to my PM today and work out a deal for them to manage the rehab!

Thank you all

Hello BP,

I am inquiring about individuals who have done Long Distance BRRRRs and if you hired a general contractor to manage the entire project.

I have identified SFHs in the KC MO area that I would be interested to BRRRR. I currently have 3 homes out there that I bought either turn key or close to it.

Some of these homes have an opportunity to have additional bed and bathrooms added on to get the most out of the BRRRR.

I would essentially need someone to manage the rehab and construction work + additions as I live multiple states away.

My understanding is this would fall under a general contractor type of need.

Has anyone gone this route before and can give recommendations or how they did it?

Any alternatives to this idea are also appreciated.

Thank you

@Michael Ohara @Whitney Hutten

Thank you for the insight! I am really hoping to use friends/family/colleagues to avoid fees, closing costs, etc.

This gives me a much better idea of what a reasonable percent would be for all parties. If I can get 7% great, but I'll be prepared to increase.

I would also be interested in what a contract would look like if anyone can provide one.

Thank you!

Greetings fellow BPers,

I have been approached by multiple colleagues talking about being interested in backing my LLC that currently holds 3 SFH's in MO. As I am not looking to give out equity, I am trying to work out a way to take on private loans from these individuals in order to finance the next home, a BRRRR.

I have a home identified, this would be a long distance BRRRR, my property management company would head up the rehab project using their certified and tested contractors, and I have a great relationship with my lender for when the project is done.

I am new to taking on private loans in this regard, especially when it comes to setting terms and interest rates.

This would be the first BRRRR project that I attempt, and the home we are looking at would be an almost "BRRRR light" as most of the work is cosmetic.

How do I structure a deal for these private loans?  How do I determine a fair interest rate?

I am some what familiar with interest only loans, and I have heard of people doing what I can only describe as "CD" style loans, where they lend an amount of money and receive the entire principle+interest at the end of the term.

Some rough math would have us looking to raise $100,000 on a 1 year term.  My initial thought is at 7% but again I am not entirely sure how to price that.  I would prefer an option where everything gets paid at the end (if this is a thing).

Thank you

@Beth Barnes I was in your position about 9 months ago. I live in CA and due to pricing and the regulatory/landlord rights climate did not want to get involved here.

I went to Kansas City MO with the plan to buy our first home through a highly recommended turn key company. We wanted to get our feet wet in the RE market out there and were willing to pay for the turnkey experience. More importantly from listening to all the BP podcasts, I wanted to get the first property "under my belt" to start building that momentum. It was a positive experience that came with great learn opportunities.

We ended up buying our second and third property through a realtor we found out there 2 months later and are currently watching the market closely for our 4th and 5th.

It was a good way for us to learn and understand the market. It is also another resource for us to fall back on if we want a ready to rent home.

Just because you do a turn key the 1st time doesn't mean you have to always do that. We look at turn keys, rehabs, agent listed homes, BRRRR properties, and more just knowing we have "more tools in the tool box".

I think the biggest thing is just getting that first property bought and running, it gets easier with each one..... And the addiction grows lol.

@William Robison thanks for passing that info along! Good to know the company actually exists!

@James Wise our realtor brings us different properties that are going to be up and coming on the MLS and does a lot of the ground work when it comes to seeing properties and sending us information when we can't physically go see them. We are investing in KC from out of state.

Because I seem to have an addiction, I also look for homes but primarily check out properties not on the MLS, hence looking at turnkey websites and the such.