All Forum Posts by: Danielle Jackson

Great guide!

Thanks for sharing!

Have them connect with a lender. Depending on timeline, as long as it is a positive cash flowing property, it could potentially help the DTI. They take a percentage (usually max is 75%) of cash flow, but it should off-set the DTI some.

Before you do anything get an agreement in place. Having it writing could salvage important relationships. Most important is being on the same page as far as strategy, but by working through the partnership agreement you should be able to hash out those critical details. 

GREAT advice and explanation from @Taylor L. I hear of so many investors passing on deals from cap rates alone. Currently with inflation, yes cap rates are a bit compressed, but there are good deals getting passed by not looking at the full picture, and overall return. As mentioned, prudent underwriting will tell the complete story. 

Congrats on a successful restaurant that has opened doors such as the idea of RE investing. So many paths to potentially take, but you are on the right track by learning and soaking up as much as you can. Best of luck on your journey and Happy Holidays! 

Good advice @Andy Sabisch. I had a property with HVAC issues uncovered during the inspection, and we just negotiated with the sellers to have it repaired (which they opted to just give us a credit at closing). If you go the latter route, make sure you have a good bid to ensure costs are all covered. Good luck! 

So many ways you could do this. Charge a fee that covers your sourcing/managing the property (usually 1-2% of purchase price), potentially an agreed upon split (after setting aside for reserves as needed), maybe 70/30 until some agreed upon % of his capital is returned, and then something closer to 50/50. Whatever you decide, congrats on the partnership and your first investment together. 

Love this and so true. Thanks for sharing! 

Run the numbers and let that guide your decision. STR is a lot of work but can be very profitable, especially in a vacation town. Sounds like you have significant equity you can tap into, but hard to provide any insight without knowing all the details.