All Forum Posts by: Blake Salisbury

Sorry for the slowness in getting back to you two, was checking around with some other folks on some structure ideas. It does sound like you can have a separate management agreement that can be made which would could include the fees the sponsor would provide aside from the TIC agreement. So contrary to what I was told, this could just have a standard agreement like a sponsor setup with property management fees, waterfalls, etc.

My friend/business partner and I are working to try and set up a deal structure on a 1031 that is most equitable for both of us. There are several deals floating around but the one I can give rough details as an example is a commercial builidng where 20% is being put down on a 2.5 million dollar asset between 3 TIC equity/capital investors that are each providing roughly a third of the equity. The fourth partner is my friend/business partner who is not bringing in equity but has handled all of the negotiations and will be the sole operator on the deal. The value add will include TI's and renting out the 50% of the square feet that is vacant.

The hangup is that in a TIC structure we have learned that every person must bring money into the deal to achieve an equitable split. The solution that was initially proposed was that friend/business partner would have his 25% equity split bought out of the funds that the 3 equity/capital partners are bringing to close and then he would take 25% of the backend profits. I stewed on this for a bit but found that it was tough to stomach being diluted 25% percent from the jump as a breakeven project would equal a significant loss of capital for myself. I feel that I'd be more interested in 50/50 backside split than this (if TIC rules allow this).

Does anyone have intel on what they have seen in TIC structures for splits or asset management fees etc? Obviously each deal structure can be different based on the specific deal, we are just looking for some ideas as we haven't done TIC structures before together.

Does anyone have any experience getting a second position line of credit or cash out (line of credit is preferred) on a commercial loan, or more specifically a package of single family homes? My situation is that I have 30 homes in Birmingham, AL with roughly 2 million in equity and would just like a 400k line of credit or something in this realm. I have called Central State Bank, River Bank and Trust, and Regions Bank on recommendations from my contacts in the area but haven’t gotten anywhere. The first position loan is with Corevest and has nasty yield maintenance penalties and will not be able to be paid at par until November of 2027. Perhaps getting this product is not possible in these times (the banks I mentioned alluded to being more open to these previously), but I figured I would send this out to the Bigger Pockets community to see if anyone had any tips? Thanks so much!

Looking forward to seeing everyone there and thanks for giving us this opportunity Mike and Tyler!

Hello,

I have a client who has 10% available (275k to 400k) for a 2-4 unit property in the Portland or Salem area of Oregon but will not have the 20-25% required for a conventional down payment.  Is anybody able to finance on this? Please let me know, I know he would be interested in a piggyback loan for the 10% if possible or potentially an offer for the 90% if possible.  Please let me know if you can help.

Thanks,

Blake

Thanks for all the feedback, I'm about to hop a flight to Mexico for the weekend but will get back on everyone on Wednesday.

Hello,

I will be looking to buy around 16 SFH properties in Birmingham, AL (around 65k pricepoint each, may get 1 or 2 more) around March of next year as part of a 1031 exchange and am curious if anyone can recommend me a company that can provide a portfolio, or blanket loan. I've called around and so far Corevest and Anchor Loans have been companies that have this project. Corevest starts at 5.5% and 75% LTV which seems competitive but I want to explore before I take the plunge with them.

I wasn't sure where this would fit under the forum guidelines so I selected Conventional, did not look like Commericial was option but that is probably what this would fall under.

Let me know if anyone can help. 

Thanks,

Blake

Andrew Meyer, we did background checks on all of them and two of them are relatives.  Thank you all for your input.  

Just told them it will not work and they were fine with it. Thanks for the quick replies. 

We live in a duplex and rent out the other side. Our tenants that are renting out the other side are 3 people who rent the three bedrooms in the house. They want to bring on a fourth tenant and have him live in the garage to bring down rent. We have looked up city code and a garage is not considered a living space. We are already strongly against this idea they have but wanted to get some perspective. Would we have increased liability insuarance wise for having a tenant in the garage? Is this typically a fineable offense by the city (Portland if it is against code)? Would be curious to hear if anyone else has ever crossed this bridge...