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12 September 2024 | 6 replies
I suspect the total value of the property and structures here will be appraised for 850k-1 million.
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11 September 2024 | 20 replies
., major structural termite damage, small mold issue).
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6 September 2024 | 9 replies
My Landscape company is an S Corp so I am familiar with that business structure, but I just don't know the best way to structure a real estate company.
11 September 2024 | 8 replies
Velocity of money, or speed in which you can complete a BRRRR investment and repeat, is key to success, and refinancing with the shortest seasoning requirements is highly important.Loan terms and interest: Cash flow is also an important consideration for a refinanced rental property, so attaining a low interest rate, as well as other aspects of loan structure (term, amortization, or interest only, etc.), plays a big role.Generally, there are three main refinance options for BRRRR method investors: Conventional loansBank/credit union loansDSCR loansConventional loans are generally defined as loans originated under GSE (Fannie Mae/Freddie Mac) rules and guidelines and securitized.
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10 September 2024 | 1 reply
Here’s the situation:Key Project Details:•Property Size (pre-renovation): 250 sq. meters (2500 sq. feet)•Purchase Price: 250,000 EUR (1,000 EUR/sq. meter)•Renovation Costs: 750 EUR/sq. meter (includes kitchen, appliances, quality furnishings)• Loan costs (during renovation and renting): 350 sq. meters (due to attic expansion)•Property Size (post-renovation): 350 sq. meters (due to attic expansion)•Post-Renovation Layout: 2 separate apartments•Airbnb Income (24 months): 2,500 EUR/month/apartment (= 5,000 EUR/month)• Other running costs: 600 EUR/month•Projected Sale Price (after 2-3 years): 850,000 EUR (approx. 2,500 EUR/sq. meter)•Closing Costs: Negligible in Tbilisi•Real Estate Agent’s Fee: Typically 3%, but negotiable based on who hires themFinancing Setup:•Property Purchase Financing: 100% bank financing at 5.9% interest (bank has even financed 150% to cover some renovation costs in the past)•Renovation Financing: Our friend is offering to finance 250,000 EUR in cash for the renovationsProposed Partnership Structure:•Work Involved (on our side): Full renovation (10-12 months to complete), furnishing, and property management through Airbnb until the sale (2-3 years)•Profit Split Proposal: 60% (us) / 40% (friend providing renovation financing)Questions for the Community:1.Does the proposed profit split (60/40) seem fair, given the work we would handle (renovation, furnishing, property management)?
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9 September 2024 | 5 replies
We did it once about 8 yrs ago (although it was structured more like a lease-purchase).
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10 September 2024 | 1 reply
These strategies, when combined with solid due diligence, can help structure deals that might otherwise fall through.
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10 September 2024 | 2 replies
My best recommendation, though, is to have a lawyer structure the contract, and make sure you are put on title.
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10 September 2024 | 3 replies
It all sounds good it really comes down to the attorney you have to structure it in a way that allows for greatest flexibility in case you know what hits the fans.I had that happen a few years ago in an equity deal and we had the other partner buy us out of the deal because it was taking a lot longer than they anticipated.