All Forum Posts by: Drew Shirley

Great thread! I'm amazed to hear you say you don't require parent co-signers. It's that much of a hassle?

My question is how you structure your leases. Do they all come due on June 1, or July 1, or August 1, and do you insist on year-long leases?

I cannot believe you are considering letting them move back in. I really can't.

It's all negotiable and will depend a lot on the expected returns, but it's reasonable for the money partner to want more than 50% of the deal. In a big syndication, the equity partners will get 70-80% of the deal. But if B is happy with 50%, that's a good deal for A.

If B says he wants 70% of this outrageously good deal, why wouldn't A take it? 30% of a great deal is better than 100% of nothing.

I happened to give a little presentation about this the other night, so here's the deal. To prove inverse condemnation, the plaintiff will have to show:

1. Ownership of a protected property interest

2. That was taken or damaged by the government's actions

3. Diminution in value of the property resulted from government's actions

4. Direct, immediate, substantial interference with use and enjoyment of property

5. Government's actions were intentional and were substantially certain to cause the harm that resulted

6. Damage was greater in extent than otherwise would have been

The battle lines will be drawn on #6 because the others are pretty much a lock. I've also seen the theory that the government will argue that it didn't know precisely which houses would be flooded, but I don't think that's a winner. 

If they can argue the damage would have been worse without the controlled releases, that could get them off the hook. But "they had no choice but to release the dams" is not a winning argument. 

Yes, I was hoping a CPA might answer :)

You may be surprised to hear me agree with this, somewhat. I think a sophisticated, experienced syndicator could probably draft his own documents and they'd mostly be okay. I don't know why anyone would want to, though. I can draft all the documents but I really don't want to. I'd much rather pay the $20k for someone else to draft them and save myself the brain damage. In a $10 million deal, that's two-tenths of a point. 

@Nicole Bernshaw Sponsor will sometimes receive an acquisition fee (1-3% of purchase price) at the closing of the purchase, payment for putting the deal together. So that's a fee right at the beginning of the ownership cycle.

I didn't have flood insurance but I do now! Not worth the risk IMO.

@Ana Patrice I have one contact for a wholesaler who's done more than 1,000 deals. PM me and I'll send you his contact info.