All Forum Posts by: Adrian Tilley

Jerry,

Thanks for the informative and thorough response.

I know other forums have this feature - couldn't figure out if BP has it. I would love to be able to search the marketplace for "colorado" or "denver". Thanks.

Congratulations @Mark Ferguson

With 3% on the front, it really only cost about $129k.

@Dustin Caldwelll You've gotten some good points to think about above. For the reasons spelled out by Leonard I might be inclined to go with the ROFO. As to the language given, I don't see any glaring problems, except that the first "owner's" should be "owner" or "owners".

I hope your manager is an attorney, otherwise s/he is practicing without a license. I'm NOT giving you legal advice, and you should run this past an attorney licensed in your state.

@Matthew Rutledge I saw that other post. It seems fairly safe as long as you know the rules, I was just a little disappointed at seeing 10% returns after hearing about 18% on the podcast...

@Joshua Dorkin Well, it depends. Stocks will average 8%, but that hasn't been the case the last couple years...25% +. Of course that won't last. Then there's the up to 3 years that the money is tied up.

I guess mostly I was referring to the fact that you could hopefully get much better returns in REI.

Seems like @Charles McPherson has the right approach to me. Have them lend you the money, give them a deed of trust/mortgage securing the loan with the property, and take the cash to closing.

@Account Closed There are a lot of misconceptions regarding how much protection a business entity provides. The bottom line is that you need to talk to a qualified professional in the State in which you want to do business, but at least here in Colorado, it's not as much as people think. Even with an operating agreement, etc. You can be sued for any personal action, even if taken in the course of and on behalf of an LLC, Corporation, etc. If you're the only member of the LLC, you can see how anything the LLC does is through you, and if you can be personally liable for your personal actions...

Additionally, the Courts can "pierce the corporate veil" which basically means that if you have an undercapitalized/underinsured/nor properly maintained entity, it can be legally disregarded.

Great show again @Joshua Dorkin and @Brandon Turner . I really like that the show is tackling higher-level issues now.

After the podcast I got excited about tax in Colorado and did some research - the going rate is 10% on liens, and they're being bid down to 9-9.5%. Future taxes on the same properties will also be at 10%. With other aspects of REI offering greater returns (hopefully) and the redemption period being 3 years, it doesn't seem like a great route in Colorado. Anyone think otherwise?

@Account Closed I don't think either investment is "better". It really comes down to how active you want to be. With stocks, it's easy to buy an index fund and wait. You'll get about 8% over the long term (you can't beat the market long term unless your name is Buffett). With REI, you have the potential for much higher returns, but there will be a lot more work involved, depending on what strategy you use, but any will involve more work than stocks. REI, with careful planning, can also provide some great tax beneifts.