Try to get some experience by helping your friend with some of his projects.

He will own 1/2 of about 4M in real estate after 2 years and is already under contract on 2 more developable projects.

BRRR'ing sounds amazing, until you need to borrow money at 9-15% and have a significant monthly payment and are scrambling to get the project done quickly. 

The objective is to keep as much of your operating capital intact as possible.The goal is to buy, fix, finance, and avoid leaving cash in the deal, so you always have liquidity for future projects.

We do not factor in capital gains tax in our final net profit projection Hope that helps!  

@Nicholas DillonI concur with @Vessi Kapoulian comments.Promised or projected returns do not mean actual returns.

You get to take depreciation on an appreciating asset, you can even get tax credits for various projects and actions which depending the level your at equals a pay-day. 

Keep in mind, while the projected performance is very important it should not be the single driving factor in your decision.

A BP fan favorite and a great way to snowball overtime. 4️⃣ Invest in Syndications or Private Lending:If you’re not ready to own property yourself, you can passively invest in syndications or become a private lender on fix-and-flip projects.

Many other projects have reduced or suspended planned CF distributions and I've also had a few capital calls in which I did participate since the business case still made sense (the MF in Florida had a capital call to finish construction and get through stabilization and it still returned the 32% IRR).I expect almost all of the deals to be OK, just later exits than originally projected.I am very concerned about one project and have already written it off in my head.