All Forum Posts by: Rafael Brown

 Thanks for the input... 

 On this deal I'm funding the entire rehab myself. But you bring up some great points. I'm just trying to be cautious. 

Hello all, 

I just signed up with a mentor the other day and I paid $15K for a year long mentorship. It includes, providing a proof of funds letter, the mentor will lead calls when requesting private funding from my contacts, work with me to set up my business (i have the llc already set up) which would include: selecting the right realtor, contractor, forwarding me his deal analysis sheet as well as his sku's for the items he uses in his properties, contractor agreements as well as walking me through every deal. We have monthly meetings (no time restrictions). His office will also help me set up a virtual assistant and mailers. Lastly, we will review each deal with me, meaning I have to submit a video and my analysis sheet with every deal and why i think it's a good deal. 

With regards to the splits, if he gives all the funding he takes 75/25(mine). If he funds 50% then he gets 50%. I told him my goal is todo 4 properties this year but he thinks we could do 10-16. He told me that he truly believes that I can do it based on my understanding of real estate (i have 15 yrs of commercial and corporate real estate). He did tell me that he is a firm believer in "what ever you put in is what you'll get out of it". 

My question is does this make sense to pay $15K for a mentor or should I just keep going maybe doing one property at a time (2-3 per year) and trying to catch my own mistakes? I just picked up my first flip and we will begin rehabbing on March 20th (we close on the 18th). 

Hi all, thanks for all of your support!!! I pushed back on the bank and they agreed to lower the price!!!! They dropped the price to $44k ($3K savings). 

@J Beard 

No, I did not start rehabbing the property yet as I have not closed on it. Based on the numbers I really don't want to walk away, I  just didn't know if anyone had experience asking the bank to lower the price for having to wait so long for a closing. 

@Mike Wood

Thanks! That's the same thing I told my realtor, that it doesn't hurt to ask.

Ok. So I purchased this foreclosed property for a really great value ($47,075). The bank just sent my realtor a note saying that because there are 2 liens that need to be handled (they are taking care of them), that closing is going to be pushed back to March 10. We were set to close on January 25th. My question is should I push back on the bank and ask them to lower the price to the original ask of $44K? Now, I'm a bit nervous to ask for a lower price b/c when I tried to purchase the property I found myself in a bidding war b/c after putting in $40K in rehab, it will sell for $140K being conservative. 

Lastly, this is my first property so that's why I'm nervous and I don't want to loose the deal. My realtor thinks that I'm crazy for asking. Why are you guys thoughts???

@Russ Wallace great advice. Do you know if BP has any same deal structures that maybe Will and I could use? 

@Will Melton this is great!!! I am in the very same situation. I am very new to investing (never purchase an investment property, only my home) and I have a very good friend who is looking to get started in commercial real estate. I have asked what type of return he was looking for and he said 20% but I never drilled down further. I am very nervous b/c I don't know how to structure the deal and really how to identify the right deal. I am using BP and looking at a ton of youtube videos but I guess I just have to get off my A#@ and get going. Just really nervous.... Good luck Will and I will share any info that I find that maybe useful to you.  

Hello all, 

I am a new fellow real estate investor and through my research it seems important to identify a friendly real estate investor CPA. My current person is not big on thinking out side the box. Does anyone in PA have any recommendations? 

Best Regards, 

Rafael