All Forum Posts by: Arthur Banks

I've loosely run the numbers on a few properties that I'll be going to take a closer look this weekend. Today I found out a few are occupied. Assuming my numbers are pretty accurate, my question is would you take a deal that was occupied but cash flowed a little less than a vacant property.

Here are some numbers on 2:

Occupied: $627 cash flow ROI: 33.23% 2% rule: 2.76%

Vacant: $692 cash flow ROI: 34.63% 2% rule: 2.64%

Again these are VERY loose as I have to verify repairs, owner utility responsibility and that cost.

Oh, let me throw this in (not sure if it matters)

The Occupied has been on market 201 days.

The Vacant has been on 81 days and is REO

Thanks all!

Can you require insurance? I'm sure I need to check with state/city law or atty.

@Xing Zhu What is HO 6?

I've read some posts on suggesting renters get insurance, but does anyone REQUIRE insurance if the tenant has a charcoal grill on a balcony?

@Will Barnard Thanks! I didn't know about the LLC. I'll look into that right away. But I think you're still missing what I am asking. I'm looking for different ways to structure the loan. Rather than go in with one option, I'd like to have several options to make a win-win.

@Nicole Pettis That is awesome! Looking forward to the 25th!

Great job and thanks again to the entire committee!

@Will Barnard If I'm understanding you correctly, you're reading my question as tho' they would put up all the money, yes? If so, that's not what I'm looking for. I'm looking for a 50/50 or them putting in some money. I guess what I'm thinking is they put up half or a portion of the money and either we ride it out splitting income 50/50 from now...until or I have the option to buy them out after X amount of time and give a percentage on the money borrowed. I'm just looking to learn some creative ways to leverage OPM.

My bad, I forgot to mention I'm a buy and hold investor.

@Ed O. I plan to not set this up not as business with my parents, but business with a private lender/partner. So paperwork and all.

I'm looking to present a deal(s) to my parents. Being as they are my parents they would more than likely simply loan (no interest)/give me the money, but I want to approach it from a business standpoint A) to show them they would get better returns than just sitting in the bank and could be great supplemental income for retirement years and B) I'm not looking for a handout but truly trying to learn how to structure deals for private money in the future.

That being said those of you who have partnered/joint venture would you be so kind as to share some of your different agreements? I'm looking for multiple options to present.

Thanks!