All Forum Posts by: Cody Lewis

How many banks have you talked to about this deal? Are you only looking at the "big" banks? Often times it's about relationships at small banks and them believing in what your business plan is for the property. Big banks typically have a cart they go by that some actuary made for them. If you haven't tried that route or tried multiple banks, I would give that a shot.

It's likely not time wasted. As @Patricia Steiner stated, if you ever need to go to court, you'll have some documentation. If you're talking to a tenant about request you could also start training them to email you "so you don't forget" it. I've used this tactic before to create a digital paper trail and used the excuse, "so I don't forget" or something to that effect. 

@Kyle Debiase JV or capital raising is likely the way to go. While you may have been burned before doesn't mean it will happen every time. Now you have experience to know what to look for, ask, and need from your partner. Get your first deal under your belt and then start looking for new partners along the way.

@Jeff Smith If you have questions about an LLC, I would highly recommend speaking with a local attorney. If you do not have an attorney, it would be worth the consultation fee or hourly rate to get some questions answered. People here can make suggestions but they cannot legally advise you.

I'm a fan of the Shumaker team: https://www.shumaker.com/offic...

I think @Daniel Han said it well! Ultimately one of the items you need to know is are you going to qualify as a real estate professional? This will go a long way to understand the tax implications on either side.

Also, Turn-key is never "Turn-key". You're going to be actively managing the management company (Or at least you should be). Weekly reports, dealing with potential budget issues, etc. If you want truly passive investing, syndication is one of the best ways.

@Brian Brown I would highly recommend speaking with a local attorney on advice for the LLC. You can likely file your LLC in Delaware that adds extra layers of protection and has decades of precedent in the business sector. If you have one created, you likely want to talk to your CPA about filing as a S-Corp.

Your attorney and CPA will likely work close together to help structure everything you need to maximize your goals for your company while protecting you and reducing taxes.

Hey Desiree and AJ! I can't speak highly enough about local REIA meetings. Looks like Charlotte has a few! https://charlottereia.com/meet...

@Fawzi Mudawwar Love the ingenuity! Having only experience with locks inside of homes, I would say dealing with this at scale can be a bit of a challenge for your managers. People often forget how to use them, need them reset, etc. Your managers will likely be caught up in doing some digital trouble shooting "it's the App" "No it's the lock".

Also if you're looking for some sort of Bluetooth or NFC solution (no wifi), then how do you manage deleting access from the person's phone? I'm not sure about enterprise solutions for locks but on the consumer side Bluetooth/NFC options require a hub if they're not connected to wifi.

All things to consider as you look to price it out.

@Tyler Bolton Charlotte is a good market, but like some other bigger cities also very competitive. Unfortunately you'll likely find that most markets are currently like this. Main states in the southeast are considered good markets right now because of the population increase. If you're looking for specific ones, I would also add Greenville/Spartanburg, SC to your list.

You should always trust your gut! That said, if you're looking to buy this property, the most concerning thing is the lack of book keeping. How are you able to confirm the deal is "good" without seeing the books? Having multiple LLCs is not likely a red flag, nor is the realtor being involved in the deal. Some realtors do and some do not invest in their own properties. 

Again, without the "books" to review, I would be hesitant anything they're saying as far as how the property is performing.