All Forum Posts by: Matthew Bernal

Hey BP Fam! I hope that everyone's 2024 is off to an outstanding start!

I was fortunate enough to get a property under contract at a great price from mentors of mine. They had suggested using a trust to hold the asset and I like the idea! 

As I was prepping my chart of accounts, though, I realized that I was unsure as to how to best structure the cashflows. Here's my basic structure:

Irrevocable Living Trust (The Protector) --> Holding Company (The Unifier) --> Aquisition's Company (They "Buyer") --> Operating Company (The Asset)

My question is how should I structure this asset on a banking level? Should the operating company pay the Trust? The property I am closing on includes $110,000 in non-real assets, where should those liabilities be held? My goal is to give the most accurate financial representation of the asset's performance? 

Please assist!

We are thrilled to introduce The Burnt Ranch Retreats, a premier real estate investment opportunity situated at the heart of Burnt Ranch, California. This exclusive offering is brought to you by Pryceless Ventures LLC, promising a blend of immediate returns and long-term equity growth.

Investment Highlights: 

• Location: Nestled along the scenic route of California Highway 299, this property boasts high visibility and access, ensuring a steady influx of tenants and opportunities for rental income. 
• Return Profile: A robust 15% annualized return is offered for the first six months, followed by a 5% equity share with quarterly dividends over the next three years. 
• Market Edge: With a superior cap rate and promising equity returns, The Burnt Ranch Retreats stand out in a market poised for growth, offering a rare investment timing opportunity. 

Financial Overview: 

• Capital Raise: Seeking $400,000 to acquire, stabilize, and manage this lucrative property. 
• Cash Flow Projections: Anticipate a monthly return of approximately $14,715, outperforming standard market yields. 
• Risk Management: Strategies are in place to mitigate common investment risks such as interest rate fluctuations and tenancy turnover. 

Investor Security Measures: 

1. Lien position with your name recorded on the Deed of Trust. 

1. A promissory note backed by a personal guarantee. 

1. Your name recorded on the property insurance policy. 

1. Access to our dedicated team's contact information. 

1. Full transparency with details of our title company, insurance agent, contractor, and other specialists. 

1. A comprehensive library of due-diligence documents available upon request. 

Ideal For: 

• The Strategic Real Estate Investor: You seek properties with significant growth potential and appreciate the mix of short-term income and long-term capital gains. 
• The Passive Income Seeker: You desire investments that deliver consistent cash flow with minimal active involvement. 
• The Equity Growth Investor: You are focused on long-term wealth building through equity appreciation. 

Click Here To Learn More! 

Contact The Team by Phone at 619-792-0988

Contact Team by Email at [email protected]

EMD: $25,000
Offering: 20% Flat Return
Return Breakd0wn:
11/22/2023 - 12/7/2023- Fee: $5,000
Security:

• JV Agreement
• Promissory Note
• Guarantee of Reimbursement Up To 24 Hours Before End of Contingency Period

Down Payment: $215,000
Offering: 15% Flat Fee Payable on December 7th and principle held for a stabilization period of 3-6 months at a 12% annualized return. Upon refinance, investors will receive their principle plus phase-2 interest back in full.
Return Breakdown:
11/22/2023 - 12/7/2023- Fee: $32,250Monthly Interest: $2,150 (Assuming 6 Months)Gross Return (Fee + Phase 2 Interest): $45,150ROI: 21%Annualized ROI: 42%
Security:

• Name recorded on the Deed of Trust
• Name Recorded on the Insurance Policy
• Position on the Operating Agreement
• JV Agreement
• Promissory Note
• Experienced Investors with 31 Completed Deals

Carrying & Closing Costs: $115,000
Offering: 15% Flat Fee Payable on December 7th and principle held for a stabilization period of 3-6 months at a 12% annualized return. Upon refinance, investors will receive their principle plus phase-2 interest back in full.
Return Breakdown:
11/22/2023 - 12/7/2023- Fee: $17,250Monthly Interest: $1,150 (Assuming 6 Months)Gross Return (Fee + Phase 2 Interest): $24,150ROI: 21%Annualized ROI: 42%

Down Payment + Carrying & Closing Costs: $330,000
Offering: 15% Flat Fee Payable on or before December 7th and principle held for the duration of the stabilization period . Upon refinance, investors will receive their principle, and their debt position will be converted into a 5% equity Position for 5 Years.

Return Breakdown:
11/22/2023 - 12/7/2023- Fee: $49,500Monthly Equity (Assuming Conservative NOI of $233,000): $970.83Gross Equity Return: $58,250Gross Y1 Return: $55,324.98Gross Return (60 Months): $107,749.80Y1 ROI (Return Plus Discount Rate of 7%): 24%60 Month ROI (Return Plus Discount Rate of 7%): 40%
Security:

• Name recorded on the Deed of Trust
• Name Recorded on the Insurance Policy
• Position on the Operating Agreement
• JV Agreement
• Promissory Note
• 60 Months of Dividends with 0nly 3-6 Months Risk Exposure
• Experienced Investors with 31 Completed Deals

Perks:

• Investors who fund over $100,000 receive a free 3-Day stay in the property along with 2 business class tickets
• Risk exposure is limited to 3-6 months
• No Rehab Needed
• We Prioritize Lasting, Profitable, Relationships

Finder's Fee:
The Investor Who Sources the Funds Will Receive a $3,300 Flat Fee, Payable within 14 Days of Close of Escrow.

Investment Breakdown:

Investment: $350,000

Debt Return: 12% Annualized

Term: 3-6 Months

Equity Offering: 10%

Term: 60 Months

Annual NOI: $233,000

How It Works:

Pryceless Ventures, LLC is offering capital partners a blended debt and equity position on an investment in Traverse City, MI (See property Here). Investors will receive 12% on their money during our stabilization period, which we are projecting will be 6 months. Once stabilized, we will refinance, pay the investor back principal plus interest, then convert the investor's debt position into 10% equity position for 5 years. To be clear, the investor's exposure to risk will be during the 6-month stabilization period and will retain an equity position without any money in the deal for 60 months following the refinance. 

Investor Security:

1. Investor will hold a second lien position, which will be recorded on the deed of trust of the asset.

2. Investor will have a promissory note and JV agreement with Pryceless Ventures, LLC.

3. Investor will be recorded on the insurance policy of the asset.

4. Investor will hold a position on the operating agreement of operating entity holding the asset.

Projected Returns:

Debt Return: $21,000

Annual Equity Return: $23,300

Gross Equity Return: $116,500

Gross Debt & Equity Return: $137,500

ROI: 40%

Extras:

Investor Partner will also get two first-class tickets to Traverse City and a week stay in the property free of charge. 

Contact Matthew at:

Cell: 619-752-0988

Email: [email protected]

In the Bigger Pockets Inbox!

@Doug Smith thank you. We're almost done. I pursuaded the seller to take $100,000 additional dollars to buy time. Money went hard immediately. I have a sit down with a high networth investor who's local here in Hawaii. He's had the deal on his desk for about a week, so the fact that he wants to meet is good news. He escalated my offering from $430,000 to $900,000 in order to cover gap, closing costs, carrying costs, and contingency.  

Here's How I Did It:

1. I offered him a 20% flat return on his investment, which sums up to around $180,000 

2. I obtained a pre-approval for a cash out refi at 85% LTV. This program doesn't have a seasoning period.

3. I presented the investor with a preapproval, appraisal, value proposition, and dynamic market data from Wickits 

4. I put together a creative capitalization stack that not only reimbursed principal and interest upon refi, but also special line of legal language in which his Debt Position converts to a 10% Profit Share which will last 5 years and is transferrable.

5. I put together a comprehensive protection strategy for my investor which keeps him safe in the event of an accident onsite or bad acting renters. The protection package also entail having the investor's name recorded on title and the insurance

6. I provided the investor with a promissory note which will be positioned in the 2nd against the subject property

Acquisition Data:

Contract: $3,200,000

AS-IS: $3,600,000

Repair: $296,000 and 100% covered by my 1st position lender

Hold Time: 6 Months

ARV Confirmed by Appraisal: $4,500,000

Hey everyone! I have a property that I am trying to get funded for a client. He hired me about a week and a half ago, to obtain some consolidation capital for him, come to find out he has a $3,000,000 acquisition in which none of his funding team took any action to close. I was able to get him $3,400,000 for the for the first position, and $130,000 for the EMD plus closing costs. We are closing tomorrow, and I am still short about $430,000. I was wondering if a Double Close would be the best way to buy more time to get my current investor prospects 100% onboard. If not, what's the better way, other than putting more money into escrow to purchase more time? Thoughts?

Hey BP Fam! I have an outstanding opportunity in Burnt Ranch, CA with Double Digit Returns for Investor. Let's get in touch so we can discuss how Pryceless Ventures can add to your portfolio!

We can help! Follow and DM. We'll schedule a call and get everything figured out. 

@Nazia Edwards

Hey everyone! I'm focused on innovating and wanted to hear some of your opinions. 

I have a property under seller finance in Northern California. It sits on 4 acres and I was thinking that the location was perfect for an EV Charging station. 

Why not? It's located in a relatively remote spot between Silicon Valley and Seattle. Seems to be prime. I was also thinking about building a grocery store there.

Has anyone diversified in this way? Leave your thoughts and comments below!