All Forum Posts by: Yan P.

For one of my projects I have been looking for a 3-4 flat to purchase, live in one unit, and rent out the others. My goal is to not have a portion of my cashflow robbed each month by mortgage or rent for my personal residence.

I will get the best value for my money by buying a gut rehab. My question is about financing. I have excellent credit as well as enough cash for a HML lender to feel nice and safe, and be approved for long term financing. I was thinking I could put down the money for a trusted friend or family member to purchase the property, do the rehab, then could purchase from them for the price it exactly cash flows at. Do you guys see any legal issues here? Will I be able to put any of the loan in my pocket if there is room left?

Rich,

I have an idea that is a little bit different than the rest. By the way you described the transaction in Ecuador it seems like you realized your real estate goals.

Though it will take more than 200k to do, why not purchase a business? I worked in a bank before where we brokered a small manufacturer to a gentleman for his son to develop his management skills. Though I am still not sure if I approve, I was blown away.

Multiples are fairly low in many industries now. Pick something that you have always wanted to do, purchase, increase revenue, hold or sell. Same as RE but more moving parts.

Should be interesting and a new challenge for an accomplished individual such as yourself.

Jimmy you are correct, I am referring to the SEC exempt private intrastate partnerships. Do you guys think it would be so difficult to properly value a real estate partnership if it has a history of dividends? In terms of audit, I'm sure there are small CPA firms that would jump to do a compilation audit for a decent price.

Jimmy, the last paragraph of your statement is exactly what I think one would want to avoid: the up front end fees such as acquisition that MP's generally charge.

Don, there are exchanges popping up all over the place that help transfer illiquid shares, I think the biggest one of them is secondmarket. My problem is that I am neither a qualified purchaser or accredited investor yet.

Don, can you please elaborate on the risks you foresee of investing in a cash flowing partnership with a history excluding fraud?

Hi everyone,

I rarely post but have read a ton from the forum. According to Bryan we're called "lurkers." I have a question about the plausibility of investing in limited partnership shares or LLC's.

Just to give you a little background, I am an accountant studying for my CPA and also have a finance degree. I am approaching this idea as an alternative investment where one can make abnormally large returns for the risk they are taking (the proverbial Alpha).

How possible is it to purchase the shares of limited partnership in the second market? Specifically cash flowing Real Estate. I imagine that when investors in the original partnership need to get out for a variety of reasons they would have to sell at a discount. And because the partnership is already operational with a good history and built-up equity, picking up these shares would give you a discount to the market value of of investing in a new partnership. Thus earning abnormally high returns.

This should be enough to start the topic. I also have a ton of follow up questions.

Thank you in advance for your responses.

Thank you for your responses Bill, Trace, and Jon. The loan does in fact cover all of the units. The bank is a smaller regional. I have taken your information into account and will begin my song and dance routine.

Yan

Hi Jon,

I apologize for the ambiguity. Feel free to ask any clarifying questions. I bought my first condo two years ago and make payments to a completely separate bank. At that time, I bought at market levels and have a completely clear title. The developer on the other hand has stopped making payments for the entire project. I would like to purchase another unit in the project for a much lower price. The developer agreed to my proposal but I am not sure what say the developer still has. The project has not yet been foreclosed upon. I hope that clears up my question.

Hi All,

I am new to this forum but very excited to be here. Hopefully I can become a millionaire in 2.5 months (Definitely joking). Here we go, I bought a condo a couple years ago for a very reasonable price near the University I attend. Currently, the developer I purchased from has run into some trouble with the building I live in and will most surely be foreclosed upon. I believe I have correctly valued the property and am ready to submit a cash offer.

Here is the issue: I have talked to the developer who is willing to accept my offer, but because he has not made any payments for at least a year, I am not sure how much say he has. I am afraid the bank can legally come after me if they think the developer sold below market value. (This unit is unfinished by the way). I called the bank's REO department who informed me that they don't normally assign agents to the property until it passes through foreclosure. So it is in this "Legal Limbo Land" where I am not sure who technically owns it. Can anyone shed some light on how to go about this?

FYI: I got a close look at a friend's documents who modified his mortgage according to the program: "That, as of the Modification Effective Date, a buyer or transferee of the Property will not be permitted, under any circumstance, to assume the loan. This agreement may not, under any circumstances, be assigned to, or assumed by, a buyer of the property."