All Forum Posts by: Colten Burress

My company will be closing on 2 duplexes in about a month, but a private investor is wanting in on the deal as well. Since this is our first rental we would like to partner 50/50 on this just as a learning experience. My question is how to go about the purchase. Do I buy it under my LLC and then have some type of documentation that there is a partner? Do I buy the rentals under a partnership instead of my LLC with my company and the investor listed on the agreement? Just looking on some guidance for the best way to approach this and what legal documents I may need.

@Tchaka Owen - Thanks for the input sir!

My company has just started and I am looking for some guidance on some important forms that I should look into for a property we are going to potentially purchase. The property is a 6 unit, in an up and coming part of town. Currently the rents are all way under market value. The current rents range from $300/ month for 2Bed 1Bath to $500 / month and all are basically Month to Month. Previous owner hasn't raised rental prices much since they purchased in the 80's. There is one tenant who has been in the property since 2009 and is paying $300/month. Challenges I foresee on this property will be, raising of rents to current market value and dealing with upset tenants, and also how to get this property updated quickly to raise its value, since it is currently fully occupied. We are going to BRRRR this property. This is our first passive income property potentially, so any guidance on some important/ recommended documents is appreciated!

We are looking at an ARV around $180,000.00, after everything is said and done we should be around $35,000.00 GP and have about $1500 in Menards rebates, assuming we sell in 4 months.

Investment Info:

Single-family residence fix & flip investment in Newburgh.

Purchase price: $90,000
Cash invested: $30,000

Just closed on our first deal using hard money. Demo has began and contractor bidding process to start soon.

How did you find this deal and how did you negotiate it?

Found property on MLS

How did you finance this deal?

Hard Money

How did you add value to the deal?

Changing layout of house, re-landscaping and finishing basement

Lessons learned? Challenges?

Several