All Forum Posts by: Bab Adetiba

I located a mfh, ran the numbers, and formed the necessary relationships on a MFH 26 unit deal. A partner wants to fully finance the deal. I will not wholesale the deal.

As someone who won't put any money down, what should I expect to split? I would love to have 8-15% ownership/cashflow in the deal. Is that an optimistic structure?

I also want to add that the property has the margins to command a 15/75 split. With that 15/75 split, the partner gets 26% COC and gives the partner the monthly $3,500 + returns they are seeking.

In addition, how do I classify this partner? Would the partner loan my LLC money with a promissory note or should I start a partnership LLC with this partner and have the aforementioned structure mentioned in the operating agreement? I am leaning towards the latter and intend to execute this type of deal many times with many partners.

I just need a little direction. Thanks!

Hello, 

I am looking for a cpa and tax specialist to ask about protection, tax planning and how to structure our businesses. I am in the southern Dallas and Arlington area. 

__________

Is this question only permitted in the marketplace forum?

Thanks for the reply. 

I consider many things but never the population trend. Upon research, The town is at about 38,000 population. And the trend has slowed down greatly since the 1990s, to a barely 1 percent yearly increase.  

[1990-2000] +0.44 %/yr 

[2000-2005] -0.01 %/yr 

[2005-2010] +0.76 %/yr
[2010-2014] +0.55 %/yr 

Thanks I went to see the quadplex yesterday. “Red tagged” as a hazard. It is a pier beam structure and salvageable. Likely Will gut out the inside. Zoning will remain. The city wants this thing fixed quickly.

In Dallas our strategy are to buy and hold sfh zoned lots for the upcoming city plans and resulting migration of the people. Speculation? Maybe to the uninformed. We Can’t find under sub $25k all-in rentals so We avoid that niche locally. Can you detail your scope for rentals?

What should be taken into consideration before deciding to demolish a property?

right now I’m doing rentals in a town that’s making good stable cash flow. The town has  a lot of potential for further investments in my niche. Unfortunately the town is primarily low income and lacking a loT Of nearby services and labor, for example, I’m having trouble finding a nearby demolition company to demolish a small mfh and qualified labor to complete the fix ups.

Have you been in this conondrum? I think I’m Ready to transition to mfh but don’t want to be stuck With an additional property On the papers. 

The GC should be able to give you a portfolio of some sort. If not, keep looking. 

Are you still dealing in TK, Texas?

I recently discovered landlords charge a monthly fee and since then, we do also. In addition to a non-refundable deposit. You'd be amazed - or not - what tenants are willing to pay for their pets on a yearly basis and how that really improves your first year return.