All Forum Posts by: Chris K.

@Sean Graham

What location in Pennsylvania? Also what's the approximate size of the deal? I have a few attorney contacts that have worked on self storage deals. But they are mostly regional. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Jason Merchey

Not sure what language you have an issue with. But most documents that you need to sign as a limited partner in a syndication deal is standardized. I would just note that there are ton of lawsuits in the securities world. In fact, it's one of the most lucrative litigation practice you can be involved in. 

Maybe you can share the language on BP so people can see what issues you might have with them. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Eric Van Deman

What's the total loan amount you are looking for? 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Jennifer McPherson

There are brokers that specializes in "mining" and other energy/commodities type deals. Unfortunately, that's about the knowledge I have in this industry. I know those brokers exist but I have no idea whether you have something valuable. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Liran Afergan

Based on the pure numbers, I think it's fine. But there are a few assumptions that seem questionable. For example, you are underwriting that your NOI is going to be around 70% of your gross scheduled income. That's aggressive underwriting. Even if you personally can achieve it, I would guess that you would struggle to get a lender to accept that underwriting for what I assume is a multifamily building.

Not sure where exactly this project is. But the construction costs seem a bit aggressive as well. But it might be feasible. Hard to say since there are very little details. For anyone to properly evaluate these deals, you will need to share a lot more information. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Allan Fan

I'll be happy to give my mortgage contacts. Some banks are pulling back but there are still several banks that are lending.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@James G.

It depends. If all the investors are living in one state, it probably makes sense to form the LLC in that state and do the operating agreement there. If the investors are from all the different areas, you have a few different options. You could form the LLC in the state where the investment sits. Or you could pick a "neutral" state like Delaware or Wyoming.

In terms of what kind of lawyer to use, that also depends. Not all real estate lawyers are expert at dealing with multi-member LLCs. So you should ideally find someone who has expertise in that realm in addition to real estate. But as a general rule, you probably should engage local counsel for handling the deal itself. So let's say you form an LLC in MD but invest in PA. You would hire a lawyer to form the LLC in MD and you would hire a separate lawyer to handle the deal in PA.

You could also go with a multi-state law firm. But they tend to be much more expensive. So it's typically outside the price range of most folks. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Shafi Noss

Here's the statute: 

https://www.ecfr.gov/cgi-bin/text-idx?SID=0a94ea1a8a9ecce212ec25025efed3af&node=17:3.0.1.1.12.0.46.181&rgn=div8

In essence, Section 506(a) states that there are certain exemptions that apply if you meet the requirements under Section 506(b) and 506(c). That's the only reason. :)

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Jared Hettler

Most title companies will not provide title insurance without a quiet title action. You could also just own the property and sit on it for an extended time (normally around 21 years). So they will require you to bring a quiet-title action to make your title insurable (and in turn marketable).  

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Nadav Ben Horin

Your Agreement of Sale should address these issues. But as a general rule, most purchase agreements will convey fee simple title. But there are also different deed types. In Pennsylvania, most folks goes with a special warranty deed. 

If you haven't done so already, I would make sure you either work with a buyer's agent or an attorney if it is an off-market deal. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.