Justin Colby

Then it's like, all right, as long as the paperwork's there, I would have a lawyer do it because the last thing you want to do is have a discrepancy of what does the loss mean to everybody? Because that's where it gets sticky is when it's all going great, everyone loves each other. Of course. The one deal that is an actual loss, then you have to deal with it. So I would tell people.

Then it's like, all right, as long as the paperwork's there, I would have a lawyer do it because the last thing you want to do is have a discrepancy of what does the loss mean to everybody? Because that's where it gets sticky is when it's all going great, everyone loves each other. Of course. The one deal that is an actual loss, then you have to deal with it. So I would tell people.

Wait as long as you can. And then I would also then say, if you were going to do it, I wouldn't always do it on flips. And how I would structure it on flips, if you're going to do it anyways and not listen to me, that's what people do. I would give them a return. Let's just say I give Dan a 10% return and or 25% of the profits.

Wait as long as you can. And then I would also then say, if you were going to do it, I wouldn't always do it on flips. And how I would structure it on flips, if you're going to do it anyways and not listen to me, that's what people do. I would give them a return. Let's just say I give Dan a 10% return and or 25% of the profits.

That way he has an opportunity that is more enjoyable for him that like if we hit a good deal, he's gonna be making more money by having the profits. So you have kind of a lever that gives you both opportunities and then do it more in the BRRRR model than The fix and flip model.

That way he has an opportunity that is more enjoyable for him that like if we hit a good deal, he's gonna be making more money by having the profits. So you have kind of a lever that gives you both opportunities and then do it more in the BRRRR model than The fix and flip model.

Because the BRRRR model, at least you have the opportunity to fix and flip or keep it as a rental because you're renovating it either way. So you need to underwrite to a BRRRR because that way if Dan and Justin found a deal that the contractor took too long, the city stopped us, whatever, whatever, we can say, hey, let's just hold this together. It's not ideal, but at least it's not a loser now.

Because the BRRRR model, at least you have the opportunity to fix and flip or keep it as a rental because you're renovating it either way. So you need to underwrite to a BRRRR because that way if Dan and Justin found a deal that the contractor took too long, the city stopped us, whatever, whatever, we can say, hey, let's just hold this together. It's not ideal, but at least it's not a loser now.

Yeah.

Yeah.

Yeah.

Yeah.

That's why I like it.

That's why I like it.

Yeah.

Yeah.

I have one unit I would love more. It was brought to me by a storage unit. He's a partner. I'm a partner in the deal, obviously, but that's his main business. And so he basically came to me and said, hey, I'm looking at buying several. I could raise some capital. Do you want to be involved? And I was like, absolutely. But the idea of why I want more is because of what you're talking about.

I have one unit I would love more. It was brought to me by a storage unit. He's a partner. I'm a partner in the deal, obviously, but that's his main business. And so he basically came to me and said, hey, I'm looking at buying several. I could raise some capital. Do you want to be involved? And I was like, absolutely. But the idea of why I want more is because of what you're talking about.

Like, it's a pretty straightforward business. You want to there is a CapEx side of that. You want to create the valuation really fast to go as high as it can really fast. And then you kind of just are going to end up sitting there. So things like security systems paint a gate around the complex. Those are like your rehab, right? I mean, that's really the extent of it.

Like, it's a pretty straightforward business. You want to there is a CapEx side of that. You want to create the valuation really fast to go as high as it can really fast. And then you kind of just are going to end up sitting there. So things like security systems paint a gate around the complex. Those are like your rehab, right? I mean, that's really the extent of it.