All Forum Posts by: Charley C.

@Derek Raivio  ok this is just me: If I had that kind of collateral in a deal like that, I would find one partner with some real horse power even if that partner will take more of the pie than a group of investors. The deal will happen sooner, you will realize your money faster and off to the next deal a good year faster than raising money one investor at a time.

May want to solicit general contractors that builds exactly what you are looking to do.. built it, rent it and sell it. Partnerships that are designed to end with everybody walking away with money seem to go smoother in my own experiences.

Good luck 

@Neil P. OK to press forward on good income property even if it does not have a good prospect of "value added" looking for deals with value added might reduce your cash flow and in the end weaken your position going forward. Getting a loan based on the prospect "value added" does not exist. income is paramount

$ right NOW is what pays the mortgage 

I would still want to really get hands around on what work needs to be done. If you got your own maintenance staff already, then that makes things easier. Also, I would ask to see the bank records on how well people pay their rent but if all checks out.. sounds like something you might want pursue 

@Matt DeBoth just to be clear: Did you have another property you used as collateral?  

I highly doubt you are perpetually land locked

Yes you need the right attorney. Not all (@Ronald Rohde is asking the right questions, might want to start with him) specialize in this matter. I am not an attorney but have been plaintiff and defendant on this type of claim what ever that is worth

its been over 15 years ago but it was using the Adverse possession laws in all my cases (and all prevailed as plaintiff) . The details are important, Talk to Ron and see if its worth doing. Sounds like it is. I had real good luck as plaintiff in those kinds of deals

@August Faustino I am in Texas and you are in Califronia so keep that part i m ind, you rules are widely different.

1) insurance companies dont just lay down and roll over when it comes to paying a claim even when its your own insurance and worse when its the tenants insurance.  they are going to say its your fault for not barricading the pipe or some horse hockey like that. Then try to brain wash your tenant in to thinking its your fault 

2) absa-freakin-lutely use that deposit money, why should you be the tenants finance company (again your in The Socialist Peoples Republic of California so you need to know the rules in that respect)

3) call your own local insurance agent, he/she will give you better advice that what you are going to get on the board. You might need an adjuster out there before you start work but if that's unfeasible, you can't not take enough pictures.. do narrative videos, those are the best. 

how you decide to move forward, would greatly depend on how well the tenant accepts the blame and steps up to the plate to make things right. And I would get the tenants car liability insurance in to the mix asap. 

 @Matt Engle Sorry I cant feasible redact the whole operating agreement but can paraphrase the most important thing(s) we wrote in there. It was what the play book says when this or that happens (addressing the worst first):

1) if one partner puts in more money than the other. What then? both of you don't want to be in an actual breach scenario. in that case the partner that is deficient looses most of the voting rights and all managing rights

2) Not in any case could a deficiency take away the partner's ability to vote on lease (on leases over 2 years) and or convey real property

3) salaries and pay on partners need to be agreed going forward

4) If this really is going to be a long lasting partnership; what to do in death, who are the heirs?  and think of all the worst, divorces can force partition sales, so many external forces could effect your partners ability to contribute (as many when-if's you can think of)

if the whole hing is really short term? Then I just get legal zoom or mycorporation .com

in no case would I pay a lawyer by the hour and then your partner pay another lawyer by the hour unless I was forced to..not for buying just 16 units. but thats me, Good luck 

@Zoe Lee the tenant can tell you the company(s) that were out fixing the septic and clearing the clogged lines over and over. 

99% sure the seller got an estimate for fixing the problem. Ask the tenant who was out there. I would not give TMI to the contractor(s) just get that old estimate mostly for the simple truthful fact, that contractor is very likely going to be the one that bores a new line to your house (with or with out the sellers help) 

If there was never an estimate? I would get what ever the seller is willing to be nice and pay, then let it go.  

@Jay Hinrichs You speak wisdom and I agree with all that but let me paint a better picture of the location, we are not at this time going to get the usual bed bath and beyond, DSW, or any of the upscale aggressive growth retail. None of them would understand this location as is. If it were, then I know to get a connected broker and stop fooling around...best money spent, yes sir I do agree with you   

My whole life, I have known how to beat the bushes and make things happen on a grass roots level and that's on the schedule of events. Once this site fills up somewhat, it will be attractive to the more aggressive retail chains, then I will reach out to a connected commercial outfit..Absolutely they can start writing contracts and leases for me while I travel and go spend money. 

@Shahriar Khan the part where you mention the end user speaks volumes. No matter what I think or want, the only way any development works is if the END USER can use it, want it , like it. The deals I seen go down the tubes are when the landowners decree as if the market will take a knee and obey. I seen these landowners get just so full of their self and actually think they can dictate like the king. The dictator on most deals is actually the end user.

Minerals? (another subject) and I can't get an outfit to drill a well there because all the exploration right now is in West Texas (just west of Fort Stockton) .. pretty sure there is both gas and oil under me but why would they want to drill there when there is much cheaper desert way over in west Texas? If you ever drive though that area in West Texas, its nuts I mean like weird so much crazy activity. its like gold rush but that gold rush has most wells striking gold big time. 

@Andy Bauman I do plan to cold call and go introduce myself to local business that want to expand to this area. also get them information on how to get it financed. 

@Andy Bauman yea its an nice problem I now need to monetize. I am busy building apartments in the Houston area right now so that's why I was looking for a way to monetize w with out having to be so hands on. 

Yes I thought about getting GC (other than me) that can build me some mini storage or an RV park big enough to house the manager. Still, that's work, someone has got to manage the manager.. there is just no better income than a triple net land lease. That kind of income leaves free to relax and travel. 

The only cost right now to recoup was the legal administrative cost last year getting the heirs to divide and fight along the way. WE just got it all recorded a few weeks ago. It was hard for me to watch that property just sit there almost 25 years all the while I had a pretty successful run at developing and spec building here around Houston. The diluted ownership of heirs is always a problem, finally its now over.