#005: Contaminated Site Remediation

Financing your residential development, new construction projects with a unique rotating funding model.  Join private money investor Lee Brownell and Tom Braegelmann as they share their expertise on financing structures and risk mitigation.

Check out this episode!

SHOW NOTES

1:03 – Background on Lee and his experience with new construction deals. 

 

1:50 – Being drafted to play baseball out of high school, but attending college and getting a PT degree, starting a private PT practice. 

 

2:51 – Leaving medicine and entering the world of private lending. 

 

3:20 – Lee’s geographic and focus and what kind of lending he’s pursuing. 

 

4:19 – How he got started in real estate investing and how he sets up his business and deals now. 

 

6:28 – Avoiding deals that are too skinny or have risks that can’t be identified or addressed. 

 

7:05 – Information on a deal that Lee worked through that had significant potential risks. 

 

8:22 – Defining a remediated property. 

 

9:23 – Mitigating the risks involved with buying a remediated property. 

 

10:11 – Final sign offs and processes for assessing remediated properties. 

 

12:44 – Information on Phase 1 and Phase 2 environmental studies as well as other methods of vetting properties. 

 

14:30 – Moving forward with the deal, trying to fund the project, and finding creative ways to reduce individuals’ investments 

 

18:03 – Crafting a rotating model for construction and investments as Tom wrote about in Bank Free Blueprint. 

 

20:41 – Background on a project involving a variation on subordinate seller carryback. 

 

23:23 – Benefits to that style of deal structure. 

 

26:23 – Addressing having different ranges of home values and styles in the same development. 

 

30:20 – Advice for anyone looking to get a deal funded. 

 

33:42 – The value of getting another set of eyes on your deals and numbers. 

 

35:26 – Learning to address more and more risks up front and thoroughly understanding the borrower before talking with investors. 

 

39:31 – Lee’s recommendation for investors to find a topic they want to learn about and dive deep on it. 

 

41:00 – One of the biggest lessons Lee has learned over the years. 

 

42:51 – Embracing collaboration, transparency, and the abundance mindset. 

 

Resources and Links Mentioned: 

 

Contact Lee at leebrownell@me.com