All Forum Posts by: Patrick Fraire

@Alex Kamunyo

Alex can you give a sample real word example of your idea of a BRRRR with $10k in?

@Cody DeLong

I agree but it might limit your renter pool. Takes the right type of person to appreciate modern art.

@John Underwood

I haven’t heard of the deposit being that much more than rent. 1.5x rent is probably 50% more of a deposit than other rentals in the area (I’m assuming based on my local market where the norm is deposit is within 10% or monthly rent). Do potential tenants try to negotiate or resist this? Any trouble with having a higher deposit? That seems like they way to go if you can swing it.

@Nathan G.

Great point! Well said.

@Jian Guy

You need plans approved before you start construction. Just do it the right way and you will get back 1.5X your money on ADU's. Trust me man you want that equity. Call the city. Find out what sheets you need to submit for a garage conversion to ADU. Get a small mom and pop architect (I can recommend several) and submit your plans. Permit fees will be a couple thousand and construction might be $50-100k. Maybe refi after the construction depending on your current loan.

@Lindsey Spivey

That’s a tough one. The realtor doesn’t want to hurt his reputation. Which is understandable. But you need to tell him your sticking to your guns on this. If he doesn’t want to put it in at that price you will have the listing agent write up the offer. He probably doesn’t want to because his commission is already pretty low on $80k purchase price and he thinks they are going to be insulted by the offer. I understand both sides but if he doesn’t want to represent you then he should put on his hiking boots and take a hike. Either that or go to Walmart purchase a kite (if he doesn’t have one already), go to the nearest park...and fly it!

Tell him you want to put it in at that price today. With or without him.

@Elliot Galpern yeah agreed. it’s pretty lame for the buyer.

@Adam Scheetz 

Ohh i see. My bad I heard you say he was familiar with 203k and I assumed that was your plan. I follow now. Thanks for the clarification. I’m not familiar with the market there but did that entire market go down after the hurricane? I could see how that would bring opportunity. I’m sure the city has some public funds to bring new infrastructure and that may have pressed a reset or pause button on the real estate cycle. 

Good lenders can bring so much value. Good point about partnerships bringing intrinsic value. I’ve never looked at it that way to be honest. I always look at the monetary side. Sounds like you know what your doing. Goodluck on your ventures! 

@Taylor L.

Awesome post man. For someone that didn’t attend this was very valuable. Thanks for the free info and sharing some good website links. I appreciate you!

@Larissa What’s the interest rate on your credit cards? I would vote to pay those down personally.