All Forum Posts by: Brian Tome

@Ben Leybovich

Always the voice of reason!  Thanks for all your insight on the BP forums.  It is because of help from folks like you that many of us are having the degree of success we are.

@Mya Austin

Cash talks when getting the deal! I put an offer in on a REO, potential buy and hold that would have been a good little money maker and could have secured a home equity loan pretty quickly and offered cash but didn't because I figured I would offer a little over list price as incentive. I later learned that another investor offered 10% less cash and got the deal. Funny thing is, he didn't have the cash in the bank either. He just had an agent who would submit an offer without the supposedly required proof of funds. By the time the bank demanded a proof of funds letter he had secured a line of credit and had the funds in his account to show cash liquidity. That property is still producing a 20-30% CAP.

@Cory Finniss

There is nothing wrong with Section 8 as long as you screen your tenants well.

@Connor Swalm

Good for you man!  I am a Blue Hen and just bought my first flip.  Difference is, I let my 'analysis paralysis' keep me from investing for the last 20 years.  Right now you are 24 years ahead of me, and I suspect you will have the energy to lengthen that gap as we age.  If you need legal advice, give me a call.

All the best!

@John Bull

I can't add any information, but I want to thank you for your service and wish you the very best of luck!

@David Hudson

Good for you man!  Not only starting out with a smart deal, but starting out with a smart multifamily!  You will be doing much more in no time, I am sure.  If you need legal assistance, please don't hesitate to contact me.

@Peter Forrest you should talk to Scott Smith with Royal Legal Solutions( http://www.royallegalsolutions.com ).  He specializes in this area and discussed the use of Trusts on a recent podcast and in a forum post at https://www.biggerpockets.com/forums/311/topics/156663-one-weird-legal-trick-to-protect-your-assets-better-than-an-llc 

@Nick Noon

Keep your head up Brother!  Nothing worth doing is easy but the ones who stay true to their path eventually reach their destination.

@Ed W. - Good points Ed.  The lender/equity partner is a family member.  He has done a promissory note/mortgage with non-family members in the past.  As embarrassed as I am to say it, I hadn't even thought of the risk of a lawsuit.  I will discuss them with him and see what he prefers.

You guys rock and I appreciate your insight very much.

@Sacha Ferrandi

I am not actually sure how I would like to structure this deal and the lender is open for any scenario. When I initially posted this request, I was thinking LLC with voting member investors and non-voting member lenders and a clause establishing interest buy outs at time of sale, or foreclosure. I found a few sample operating agreements that will work with minor modifications, and my lender seems to be OK with that. Would you recommend something else? I want to be as fair to my lender as possible because I would like to borrow from him again if this deal goes well. I also want to minimize tax concerns for both of us as far as the instrument makes a difference.