FAQ

Our contracts are written by professional investors (who also happen to be attorneys) for investors. They are written for investors.

Here are just some sample terms in our contracts that you won’t find in an off-the-shelf download:

Manage Contractors :

– We include a scope of work that mandates contractors to provide itemized to-dos, not their typical catch-all “renovate kitchen” example quote.
– Give yourself the right to buy the construction materials – not the contractor – to prevent abuse.
– Strict penalty and incentive clauses to get your rehab done on time.
– Payment terms that favor you, not the contractor.

Maximize Rents :

– Auto-renewal provisions.
– Strict penalties for late rent.
– Tenant pays the utilities.
– Escalating rent provisions to avoid ever having to renegotiate a price increase.

Control Property Managers :

– Prevent them from overpaying for repairs to your properties or negligently hiring contractors.
– Built-in fee reduction as your portfolio grows

Our BRRRR Solution and the other resources you will find on our site are the result of nearly ten years of my own real estate investing, entrepreneurial and legal experience. I started investing personally in real estate in 2012, getting started like many in single-family homes, have advised clients for years in this space and now work in real estate on a sophisticated scale as the head of legal for a real estate investment firm based out of Medellin, Colombia. Our firm is focused on international real estate investment opportunities ranging from the more traditional space of hotels, food and beverage and apartment-condos all the way to agriculture plays in coffee, cacao and cannabis. At the time I am writing this, we are in the midst of and I am overseeing the closing of and financing on a $16.5 million hotel located in San Juan, Puerto Rico and additional acquisitions in the agriculture space. Real estate investment is my job. My goal is to share my experience with you so that you do not have to recreate the wheel in your own investing!

Here is a bit more on my legal background – I hope it helps you feel like you are backed by credibility and experience in your own investing journey:

  • Chief Legal Counsel – Real estate and agriculture investment firm specializing in emerging market investments with approximately $80 million in funds raised.
  • Head of Legal for technology startups located in the United States and Europe.
  • Past corporate client list includes: Sherwin-Williams, R.J. Reynolds, Procter & Gamble, Macy’s, JP Morgan, Citibank, Morgan Stanley and Yeti Coolers.
  • Ten years of major U.S. law firm experience – Vinson & Elkins LLP and Jones Day
  • New York Law School graduate, magna cum laude
  • Fellow Entrepreneur and Real Estate Investor

Generally, no. Flipping properties has its downsides. First, you will end up paying taxes on the income from your flips at your ordinary income tax rate – as much as 37% of your profits – since these profits will not be considered capital gains. Second, you will also miss out on the wealth-building that comes from the appreciation of real estate because you will no longer own the property. With BRRRR, you will not be taxed on loaned funds upon a refinance – the IRS does not tax loans – but you will still have your initial investment capital back in your account to acquire more properties. Also, since the property will stay in your portfolio, with BRRRR you will get all the upside of your capital appreciation.

So, why did we say “generally no?” Sometimes market conditions make a flip more favorable. For example, a flip can be a good option where there is a strong market for real estate sales but rents are low are property taxes are exceptionally high. In other words, where you could make a nice profit on sale but your cash flows would be negative or too low for you to justify holding the property. Our Deal Analyzer Tool can help you make this calculation in the matter of a few seconds.

First, do not give up. What options do you have that you are not thinking of – cosigner? Non-traditional lender?

OK, let´s assume refinancing is not possible – you do have a couple of options here. Of course, you can simply decide to hold the property and generate the cash flow and appreciation tied to the investment. The downside there is that your cash is tied up, obviously. You always have the option to sell the property. If you decide to sell, you will have collected a few months of cash flow from the tenant that you had leading up to the sale and will now have a property to sell in which you have created a lot of equity through your rehab efforts. There is certainly a strong market for turnkey properties with existing tenants for investors interested in ongoing cash flows.

Absolutely. The downside of this scenario is that you will likely have to pay fees related to the initial loan that you get and the refinance loan, but that does not mean it is impossible or that there is not a deal to be had. Our Deal Analyzer helps you see what the returns will look like under this buying scenario. Simply input your cash and loan amounts there to see if the deal works for you as an investor.

Before, for sure. One beauty of the BRRRR strategy is that you can often use your refinance loan to pay yourself back for rehab costs. For example, assume you add a new roof to a house for $7,000 and because of that the after rehab value on the house is $10,000 more than before the repair. Well, as mentioned above, you should be able to refinance for 75% of your after rehab value. In this scenario, the bank would be lending you $7,500 for a repair that cost you only $7,000 – actually giving you all your money back plus an additional $500 that you can also invest in your next project.

Absolutely. We built this site for the BRRRR investor, but that does not mean that all deals should be done under the BRRRR model. For that reason, in the Deal Analyzer we have included the option to evaluate the property as a flip. A flip is often a good choice if you the rents in a given area are weak in comparison to cash flows but where there is also a strong demand for home purchases. Our solution will help you see the results side-by-side in the BRRRR and flip scenarios for the given property so you can make your best decision. We are also here to help talk you through that thought process

Our solution is also great for the regular conventional buy and hold. Maybe the plan is to get a purchase mortgage, buy the property and rent it out our live in one portion and rent the other. With our solution, you just need to adjust the inputs in the Deal Analyzer so that the assumption of a refinance is removed. Our solution is flexible so that you are always seeing options can move forward intelligently.

All investments come with risks. Fortunately, real estate offers many downside protections not found in most other investment products. Our favorites:

It is flexible – you can rent it, sell it, borrow against it, gift it, donate it, all among a host of numerous options – options that often do not exist with other investments.

It is historically stable – simply stated, real estate prices historically have not been subject to the drastic ups and downs found with other riskier investment products. It is very likely that if you need to liquidate there will be a market for your investment properties.

We are here to help you manage the risks of real estate investing in general and applying the BRRRR strategy to your portfolio of wealth-building assets. Read more About Us or start your free trial of our BRRRR Solution !

Basic contract law is going to apply in all 50 States. All States recognize the basic principles of contract law – an agreement negotiated between the parties, in writing that obligates the parties to take certain actions. Our contracts certainly do just that. That said, we strongly recommend consulting with a legal adviser licensed in your jurisdiction to provide advice on your specific situation. See our Terms of Use .

Yes, of course. We know people have questions. For that reason we have created this tutorial for maximizing your subscription. We also offer our live chat services, and hope that we can provide you great service with that feature. If, on the other hand, you, among other things, want someone to help walk you through a deal analysis, have contract questions or would like help starting your investment business, we would be happy to schedule a consult with you. You can schedule your consult here. Consider your one-on-one chat with our experienced investors and attorneys as an investment – the deal advice, experience and peace of mind it will bring to your investing processes will more than pay for itself.

Our contracts are written by professional investors (who also happen to be attorneys) for investors. They are written for investors.

Here are just some sample terms in our contracts that you won’t find in an off-the-shelf download:

Manage Contractors :

– We include a scope of work that mandates contractors to provide itemized to-dos, not their typical catch-all “renovate kitchen” example quote.
– Give yourself the right to buy the construction materials – not the contractor – to prevent abuse.
– Strict penalty and incentive clauses to get your rehab done on time.
– Payment terms that favor you, not the contractor.

Maximize Rents :

– Auto-renewal provisions.
– Strict penalties for late rent.
– Tenant pays the utilities.
– Escalating rent provisions to avoid ever having to renegotiate a price increase.

Control Property Managers :

– Prevent them from overpaying for repairs to your properties or negligently hiring contractors.
– Built-in fee reduction as your portfolio grows

Our BRRRR Solution and the other resources you will find on our site are the result of nearly ten years of my own real estate investing, entrepreneurial and legal experience. I started investing personally in real estate in 2012, getting started like many in single-family homes, have advised clients for years in this space and now work in real estate on a sophisticated scale as the head of legal for a real estate investment firm based out of Medellin, Colombia. Our firm is focused on international real estate investment opportunities ranging from the more traditional space of hotels, food and beverage and apartment-condos all the way to agriculture plays in coffee, cacao and cannabis. At the time I am writing this, we are in the midst of and I am overseeing the closing of and financing on a $16.5 million hotel located in San Juan, Puerto Rico and additional acquisitions in the agriculture space. Real estate investment is my job. My goal is to share my experience with you so that you do not have to recreate the wheel in your own investing!

Here is a bit more on my legal background – I hope it helps you feel like you are backed by credibility and experience in your own investing journey:

  • Chief Legal Counsel – Real estate and agriculture investment firm specializing in emerging market investments with approximately $80 million in funds raised.
  • Head of Legal for technology startups located in the United States and Europe.
  • Past corporate client list includes: Sherwin-Williams, R.J. Reynolds, Procter & Gamble, Macy’s, JP Morgan, Citibank, Morgan Stanley and Yeti Coolers.
  • Ten years of major U.S. law firm experience – Vinson & Elkins LLP and Jones Day
  • New York Law School graduate, magna cum laude
  • Fellow Entrepreneur and Real Estate Investor

Generally, no. Flipping properties has its downsides. First, you will end up paying taxes on the income from your flips at your ordinary income tax rate – as much as 37% of your profits – since these profits will not be considered capital gains. Second, you will also miss out on the wealth-building that comes from the appreciation of real estate because you will no longer own the property. With BRRRR, you will not be taxed on loaned funds upon a refinance – the IRS does not tax loans – but you will still have your initial investment capital back in your account to acquire more properties. Also, since the property will stay in your portfolio, with BRRRR you will get all the upside of your capital appreciation.

So, why did we say “generally no?” Sometimes market conditions make a flip more favorable. For example, a flip can be a good option where there is a strong market for real estate sales but rents are low are property taxes are exceptionally high. In other words, where you could make a nice profit on sale but your cash flows would be negative or too low for you to justify holding the property. Our Deal Analyzer Tool can help you make this calculation in the matter of a few seconds.

First, do not give up. What options do you have that you are not thinking of – cosigner? Non-traditional lender?

OK, let´s assume refinancing is not possible – you do have a couple of options here. Of course, you can simply decide to hold the property and generate the cash flow and appreciation tied to the investment. The downside there is that your cash is tied up, obviously. You always have the option to sell the property. If you decide to sell, you will have collected a few months of cash flow from the tenant that you had leading up to the sale and will now have a property to sell in which you have created a lot of equity through your rehab efforts. There is certainly a strong market for turnkey properties with existing tenants for investors interested in ongoing cash flows.

Absolutely. The downside of this scenario is that you will likely have to pay fees related to the initial loan that you get and the refinance loan, but that does not mean it is impossible or that there is not a deal to be had. Our Deal Analyzer helps you see what the returns will look like under this buying scenario. Simply input your cash and loan amounts there to see if the deal works for you as an investor.

Before, for sure. One beauty of the BRRRR strategy is that you can often use your refinance loan to pay yourself back for rehab costs. For example, assume you add a new roof to a house for $7,000 and because of that the after rehab value on the house is $10,000 more than before the repair. Well, as mentioned above, you should be able to refinance for 75% of your after rehab value. In this scenario, the bank would be lending you $7,500 for a repair that cost you only $7,000 – actually giving you all your money back plus an additional $500 that you can also invest in your next project.

Absolutely. We built this site for the BRRRR investor, but that does not mean that all deals should be done under the BRRRR model. For that reason, in the Deal Analyzer we have included the option to evaluate the property as a flip. A flip is often a good choice if you the rents in a given area are weak in comparison to cash flows but where there is also a strong demand for home purchases. Our solution will help you see the results side-by-side in the BRRRR and flip scenarios for the given property so you can make your best decision. We are also here to help talk you through that thought process

Our solution is also great for the regular conventional buy and hold. Maybe the plan is to get a purchase mortgage, buy the property and rent it out our live in one portion and rent the other. With our solution, you just need to adjust the inputs in the Deal Analyzer so that the assumption of a refinance is removed. Our solution is flexible so that you are always seeing options can move forward intelligently.

All investments come with risks. Fortunately, real estate offers many downside protections not found in most other investment products. Our favorites:

It is flexible – you can rent it, sell it, borrow against it, gift it, donate it, all among a host of numerous options – options that often do not exist with other investments.

It is historically stable – simply stated, real estate prices historically have not been subject to the drastic ups and downs found with other riskier investment products. It is very likely that if you need to liquidate there will be a market for your investment properties.

We are here to help you manage the risks of real estate investing in general and applying the BRRRR strategy to your portfolio of wealth-building assets. Read more About Us or start your free trial of our BRRRR Solution !

Basic contract law is going to apply in all 50 States. All States recognize the basic principles of contract law – an agreement negotiated between the parties, in writing that obligates the parties to take certain actions. Our contracts certainly do just that. That said, we strongly recommend consulting with a legal adviser licensed in your jurisdiction to provide advice on your specific situation. See our Terms of Use .

Yes, of course. We know people have questions. For that reason we have created this tutorial for maximizing your subscription. We also offer our live chat services, and hope that we can provide you great service with that feature. If, on the other hand, you, among other things, want someone to help walk you through a deal analysis, have contract questions or would like help starting your investment business, we would be happy to schedule a consult with you. You can schedule your consult here. Consider your one-on-one chat with our experienced investors and attorneys as an investment – the deal advice, experience and peace of mind it will bring to your investing processes will more than pay for itself.

If You Have Any Further Queries Please Email Us At [email protected]