All Forum Posts by: Davon Lowery

yes, 50% of some deal is better than 100% of no deal. Maybe with your 50% you've have 20% left over to put down on your own deal.

@Craig J Eiland Congrats on taking the steps to develop your business. The first year the SFB waives the $800 and only taxes you on the income that your business generates. Yes, there are benefits to forming an entity out of state; however, if you don't plan on spending anytime and or developing your business in that state, I would not be inclined to do so; but, check with your legal and accounting professionals. 

When I was deciding what entity to form, I inquired with my attorney about the series LLC /Delaware series LLC. At the time of our conversation, he stated that he was not aware of or not have having had encountered any precedence for or against the series LLC model. He further stated that the theory behind the series LLC model is sound, it had yet to be proven in court, i.e. though punitive litigation. He then asked if I wanted to be the first to prove and or defend the model viability. I said no and formed a different entity.

Whichever you choose keep us posted on your success.

A renter just responded to one of my posts, inquiring if we had rentals in the Minneapolis, Plymouth St Louis PK, Brooklyn Park or Richfield areas; we don't, so wanted to pay the potential lead forward. If you are looking for a renter, and you have a rental in these areas of Minnesota, in box me for details. 

Renter stated that they have been approved for a 2bd section-8 voucher and is looking to move within the next 60 days or less.

Just found out, they accepted an offer a couple of days ago.

 Thank you Ryland. I appreciate your input. After listening to your podcast and reading your input, I respect all of your hard work and experience(s), I will continue to grow in my craft. 

I have been using $45 per sqft. for a ruff estimate, but now I see that number can fluctuate drastically, based on condition of the house and scope of work, etc... 

The problem I have with the 20% contingency is that, it throws the rehab budget drastically out of wack. In lies my initial point on contention; i see this is a cyclical argument thus putting us in a infinite loop. Pay more for rehab, get the house for cheaper....We have our secondary industry where there will be no way to make a profit because of out of control costs. 

Additionally, My broker friend says inventor is shrinking, we all know what that does to the market.

I love the idea of having monetary penalties for delays on projects.

And there are not many young ppl that I meet now-a-days who say that they are in craft school to learn a trade, many of them are opting for the Arts or business.

@J Scott believe me Mr. Scott I'm the last one to complain, 1st no one cares, 2ndly its a waste of time and there are plenty of ways that we can be misunderstood typing. We must account for language and other things.  I have respect for our contractor folks, yes I understand they have an obligation to their business and their family. I learned long ago, all I'm expected to do is, an honest days work, for an honest days pay.

Every contractor reserves the right to refuse my job as well as I have the right to pass on his bid.

But, after reviewing both your podcast interviews, and reading your books, I have a tremendous amount of respect for you guys and how you have been conducting your business.

I will continue to work on my business and learn and grow. I have received an over whelming amount of information; all of which I am very grateful for, if they agree with me or not. I don't learn if I remain in a zone that is comfortable.

Thanks.

@Karen Margrave Thank you for your perspective and the invite. I will be taking you up on that as soon as we get something more definative. I've seen what you guys do down there, on your website, amazing stuff. 

Thank you for pulling @Antonio Gonzales in on this. I know I have a lot of home work to do. We are setting up something with the broker next week. I even floated the idea of JV owner financing on the land with a payout on the back-end as a percentage to the owner. There will be enough meat on the deal to bring in him/her as an additional investor.

I'm sure it will be me doing the deal structure, project management, acquisition work and the analysis, so I have a lot of studying to do. We've got our architects, and engineers, so I'm confident on that end, the only issue(s) will be capital and the city (that i can see thus far).

Correct me if I'm wrong, but if we do hard-money on land, all ready owned lets say via joint-tenancy/tenancy in common we can get 90% of future value loan to cost??? Please say yes. That's considering a JV with the current owner.

On the conservative side, I'd say it will be $600k for sure, but if we get a bidding war we can anticipate $800k for both units. 

But I can foresee an issue commanding anything north of $600k (per-se), if we elect to merge the lots. We need to further refine the plans after our meeting.

 Thanks J.

Uhhh, hate to be the guy who goes the other way on this, but can someone bring me up to speed as to why the investors would want a W9 from the contractors? Is that so they can 1099 them later? 

A contractor (plumber by trade), long time family friend and I have been discussing different REI projects that we might be able to work on together. He does my plumbing work so I am familiar with his quality of work.

A broker friend of his has as listing of undeveloped land here in south LA. Lot is approx. 7k sqft., double lot, 2 tax keys, but city said that we can merge them at closing.

Area is zones for SFR/duplex's and City says we can build 2 SFR's or 2 upstairs/downstairs duplex's on the lot after we merge them. I told my friend that I was inclined to build 2 SFR's, in that the SoCal market is extremely hot and I can imagine the bidding war when we finish. IMHO, I said that, I imagine we would need to keep them as rentals, if we do duplex's or flip them to another investor, which might delay the resale (I know not an absolutism but, again IMHO).

Naturally, we will need financing, what are some one the financing challenges do you imagine we will have. 

Ideas? Experiences? Lunch/Coffee?