All Forum Posts by: Chris Pasternak

Do you suggest an LLC over a simple written agreement signed by both parties? If so, why?

Hi BPers,

My first deal was a partnership. After talking to a seasoned investor,and wise older man, he said I should outline responsibilities of each partner, especially financially and both of us should sign off on it after agreed upon. Does anyone have a sample of one of these documents I could use?

Brian - I am in a very similar situation. I have cash to use, great credit, but minimal income, limiting me to under 80k properties mainly. HOWEVER, this never stops you from seeking creative financing deals such as lease option deals, owner financing, etc. Quick story:

I set up an appointment with my realtor to look at a duplex listed at 79k. It looked like it was very well maintained and was fully occupied. I was seeking conventional financing. After I accidentally slept through the appointment to see the house, I called my realtor and found out he was interested in the property and asked if I was interested in partnering. One thing led to the next and today we signed a lease/option to purchase deal with the very old landlord/seller. Moral of the story is that nothing beats finding (sometimes stumbling or sleeping on) a motivated seller.

I suggest telling EVERYONE what you are trying to do. You never know who might tell you they know this guy or that gal looking to sell their house...

Hopefully someone can help me out on this. This triplex has only two HWT's and 2 furnaces. The 3rd floor unit does have electric baseboard heating but I'm confused as to how I could go about divying up the shared HWT? Could I simply pay for the water bill and raise rents? Water is lienable against the property anyways so it might not be a bad idea regardless no? Thanks ahead of time!

I'm financing a triplex at 49k, 25% down with one of the biggest banks in America. The thing is, they have a stake in my city. Go local. Banks that have a vested interest in the community will be more willing to work with you. Good luck. A lot of people suggested credit unions to me when I was pondering this too. Honestly, just call around and you'll find someone I'm sure

Mmm, if there are houses I'd say investing is possible. Near a Navy base? Buy n hold em.

Aaron, thanks. For management I figured it with 2 vacancies a year so the PM would take first months rent. That's how I got the higher number for PM yearly.

Thanks guys. This particular property will take me the following out of pocket expenses if I use conventional loan (25% down):

Down payment - 12,250

Initial repairs - 5,000 (estimated, not sure if this will be higher or lower yet but figured I would need some repairs due to age)

Closing - 4,000-5,000

This particular property has potential mold in the basement on the floor joists

I suppose I have not accounted for snow removal/lawn service but my numbers reflect over 50% expenses