All Forum Posts by: David Ferrette

Absolutely 

@Andrew Brooks

Did you end up picking up the property?

@Jay Hinrichs

Very exciting.  I would like to see if you can get a record number of votes for your post.

Knowing that Operating Agreements in an LLC can be different, what are ways to structure your distributions/equity to each equity partner if the partners put up cash only but I am putting up cash and time. For instance, if I put up $50k and I find three others to put up $50k each to buy a multi-unit, but if I found the property, I fixed the property up and I am the property manager, would I take a lump sum fee up front or would I take a monthly fee for all the effort I put in (or both)? Or is there some other arrangement that makes more sense? This would be a long term buy and hold scenario.

My partner will be living in San Antonio in one of the units. I have known him for 15 years and have already done more than one deal with him. In two years he will move out and we will rent the 4th unit out so slow down on the fraud and the aggressive tone. That was the original plan. Now that we have seen that the house needs quite a bit more work than expected, plans have changed. It will still cash flow very well if we buy it at a discount for cash, rehab, refi then rent out. This has now shifted to a BRRRR strategy.

If the units were in better condition, I would not hesitate house hacking with a partner using an FHA or 203k loan. I too plan to do this same plan. This is a long term plan and we accumulate more properties faster while spreading out the risk. This may not work for everyone, but it is a plan that we feel is solid.

Well, it looks like the deal is going to fall through unfortunately. I did know that one of the units need to be rehabed fully but I didn't know they already started the demo. I can't get an FHA loan if there is no kitchen. We are now in the process of offering cash as-is but at a much greater discount. I will let you know if we can still turn this into a successful deal.

Use the TCA Handbook for proper tile installation:

http://apps.laticrete.com/ag2.0/reference/TCA2003-2004.pdf

C Meddy,

I use a guy in OC that charges a very fair rate and also owns rental properties himself.  If interested, send me a PM.

Taxes: You have to know the tax rate for the location that you are buying in.  There will be varying rates even within a city.  You can go to the county assessors website or you can ask your Realtor.

Insurance: I send the location of the property to my insurance agent that I have used on my other properties.  He can usually turn a quote around in 24 hours.  

Yes, one needs to be vacant and the contract will need to stipulate that one of the units is designated for you.  I don't know the exact wording, as I am neither a Realtor or Loan Officer.  Talk to your loan officer to see what their exact needs are.