All Forum Posts by: Arpan Patel

Could be best to ask your local attorney. Just be a bit careful because different states have different laws about how to compensate - if at all - individuals helping you to sell your real estate. It can be a bit hairy here in Illinois as there is a case going on right now about this - I'm sure there are more but I know of at least one. Good Luck!!

I think it can be. You will need to do a different type of vetting of course but it can work as long as you are investing where you can have boots on the ground - that can even be your partner not just friends or family you know in the area. You may want to consider partnering with your boots on the ground not just from a checking in the property aspect but many lenders don't lend unless someone with equity is local. I think it is a good idea - I have one investor in the bay area and one on NJ so it can work but it has it's own challenges. PM me if you'd like to discuss further. Happy Hunting!!

no nothing wrong with that. Just treat them as your own and make sure to do your homework. It is - in my opinion - the least lucrative strategy until you can pick up volume based on the time necessary but if you attract 20 to start off with you will be well on your way and you can use that platform to network out from there and get into different strategy. I think it is a wonderful idea - see a need, fill a need!!

One thing to be careful of is that the structure will matter to your lender. But to your main questions about if an LLC is the best way to go, that is what we use. It is pretty flexible and allows for flow through partnership treatment. Of course consult tax and legal consuls to make sure you are getting well informed opinions. We use a Series concept and it works out well because each sub series is treated like a completely independent corporation from an asset protection standpoint but as on LLC for tax purposes. If you PM me I can refer you to the professionals I work work. Good luck!!!

You can always looking up a template of the major clauses of an operating agreement but most attorneys in this line of work have their own and usually give you a flat fee price for it. It might actually cost you more to write your own and have them review. Maybe Legal Zoom or Nolo may have samples. 

Have you tried the BP calculators for rentals? They are wonderful and will make sure you aren't missing any information. Try it out and I can take a look with you if you share it with me. Off the top of my head, Utilities if necessary, Maintenance, Cap Ex, and Property management come to mind. This may not be the best deal but who knows. (The HOA might kill it for me)

I would certainly not defend it (plus I'm not sure you will find too many advanced value traders on this platform) because there is also the lack of control. I don't know the board of say Tesla and what they really plan to do but I do know the owners of my company and the managers of my assets and have control over those decisions. I like to be in charge of my future for better or for worse. Secondly, there are ways to insure your investments in the market but not typically done versus real estate where the insurance products are well priced because of how often they are purchased. I don't know the last time my friends who are in the market bought a bunch of naked puts to cover their investments. In addition to well priced leverage, control and insurance are what makes me like real estate so much. (naturally there are others but these are the big financial themed ones)

As far as what ROI to offer, I'd ask them as see what they tell you. On flips, I don't take partners because i don't think the risk profile is fair for the investor. Their risk is the same as the operator but they don't have the skills, knowledge, or time as the operator making their risk profile much more risky than yours. Therefore, a split in profits is not fair and I don't a more heavy investor split is fair to the operator therefore, I only offer a return. In rentals, I offer partnerships because the risk profile is much better long term and there isn't as much active management if you hire a third party manager and just manage them. Those are just my thoughts and how we run out business. Happy Hunting!

yea!! We've all been there before; talking to people who may or probably (in our minds) know more than us. Especially under conditions where you're stepping into a new opportunity. Good luck and post how how it went!!

Why not ask your uncle to come with as well? As for what questions to ask, first I'd do as much research on the area as possible to try and not rely on the realtor. It will help you with credibility with the realtor and at the end of the day, you are pulling the trigger and not them. If there is a loss, it is your loss so I always say try to be as knowledgeable as possible before you first meet that person. Then you can ask more granular questions versus questions you could've answered on your own. I hope that helps and Happy Hunting!!