All Forum Posts by: Brandon Duff

Hello,

Here is my Introduction: 

I started browsing  the forums in January and closed on my first property in April of 2015 in Las Vegas. 

PITI is $548 a month

Rented for $950 a month. 

Its been rented within the first week of closing.

I put in about $3000 in it for repairs ( blinds, closet doors, etc) and  25% down.  

I believe this is pretty close to my #'s obviously thats just forecasting because I haven't had it for long term.

TO GET TO MY ACTUAL POST:

My client wants to partner with me on a property. He said and I quote.

" We have 2 mil in a land trust outside of the lab. I think 250-300k as a down would be manageable. I have a good relationship with Chase, but only if there is a great deal of certainty on the return"

He is looking to take the HEADACHE Factor out on his Investment, and prefers me to FIND the Property and Manage it.. While he collects checks. 

We both have 1+ units in Las Vegas ( I think he has 2-3 Units in Vegas, they sit unrented, mine is rented).

We are looking at getting into a bigger multiplex property ( maybe 8 units+++ commercial Apartments); obviously depending where is the factor on size/price.

Areas we are looking for are Palm Springs, Wildomar, Murrieta, and even continuing to invest in Las Vegas. 

Las Vegas has higher Cashflow/ROI but further and with bigger properties it becomes more managing people vs the actual unit themselves.

Buying in Wildomar, Palm Springs Etc.. Closer but not a good return maybe a 3-4% Cap? 

Both areas seem to be growing. 

Now for the Actual Partnership..

If he is supplying the Capital, and I will be managing the properties, do you feel 50/50 Split is fair? I own my own fitness company so It will be more of a mid-day job, weekend job. 

My fiancee ( soon to be wife, 8 months from this post) actually works in property management and over sees 350+ units for a major developer in California so I also have that on the offering table. 

How would Maintenance work?

Pre Move In Repairs?

( I am not a handyman at all, nor do I have the time to) 

Anyone have a Sample Partnership. Capital VS Management. 

What type of Partnership LLC? LLP? Joint Venture? Etc.

I think the best bet would be JV, and scaling from there..

Some Posts I have been reading about this :

http://www.biggerpockets.com/forums/109/topics/154527-joint-real-estate-partnership-with-best-friend--need-help-with-legal-advice-deal-contingenies-etc  ( this has been the most help)

http://www.biggerpockets.com/forums/50/topics/1683...

http://www.biggerpockets.com/forums/432/topics/209...

http://www.biggerpockets.com/forums/521/topics/116...

http://www.cnbc.com/id/102816266

China market has fell about 50% today... Trade has stopped...

Predictions about US economy? 

Discuss

why would investors get into an area with no foreclosures and increased prices ? 

thanks for the great info! 

Hello,

I am an out of state investor and started to investing in Las Vegas from California.

I purchased my first rental property SFH and cash flowing around 138 a month without PM( I should have factored in PM before I ran my numbers but I didn't )

Anyways, I am itching to get into a second property, but since I am a self employed person ( I own my own fitness company) my debt to income ratio is capped ( self employed = look poor on W2) 

I bought Brandon turners book how to get into real estate with low to no money down, and looks like my best option is OWC. However all the deals I've been presented are like. 

5% down, 7% interest with a ballon after 5 years, so paying mostly interest and then refiance into a mortgage with pretty much what the asking price was. 

I can't find deals since I'm out of state and not a realtor ( no MLS, no Driving for dollars, wholesellers want usually all cash)

I can't get home equity line of credit because I only have 20% of equity in my current property. 

Partners, I am not a fan of because I've always been a do it myself guy and would hate to get in a tiff with someone, unless it was a silent partner/capital partner of sorts. 

Hard money same as owner will carry but worse. 

What other options do I have? 

I make great money, my business is successful and has been successful for 8+ years and even more so even the last 3+ years, most banks don't do stated income, I can't work with a porfilo lender yet correct? I need more than 1 property.

I can't get into commercial... ( i would prefer not to get myself into a pickle with 5+ units and have it sit vacant and pay the mortgage out of pocket, too much risk for someone just starting) 

I guess wait till my next w2 k1 and show more income this year and buy up a few properties, but then I feel properties will be higher than what I want to spend and interests rates will be higher too.

 You will get those prices in the mid west, Texas, never a big city.. Small cities, or Detroit etc

plenty of good spreadsheets on the forums, under the file center, run your numbers.

I would include all repairs, mortgage, cap exp, PM, and if you get $100 a door. Great

I'm not  great at deal finding but the podcasts have great insight. I own my own fitness business so I do investing as a means to an end... 

I think so many people try and find deals to to hit these certain 1-2% rules  of thumb and then never buy because so many people are focused on a good deal.. 

Brandon turners always mentions about what's better 50% of a good deal or 100% of no deal. I feel the same way.. 

If you spend all your time finding a good deal and never purchase anything... Whats worse then finding a deal that you pay a little more and still make money...or always trying to finding that perfect deal but it never comes 

I believe in 100 per door 

negotiate the price down. Foreclosure , short sales are all options, distressed properties, ( run down or tired landlords), hard to find anything on MLS

Hello, California is very hard to get a good return unless you are flipping higher end homes or going to areas like riverside. 

Vegas and Arizona are easier to get into but if you plan to manage your own properties prepare for the time to drive out there, if you plan on having a PM, plan on it eating into your cash flow. 

I am also in Orange County and got into my first property in Vegas end of April.. Welcome to the community.