All Forum Posts by: Frank Geiger

@Franky Aikens the biggest thing is to make sure that everyone feels like they won or got a great deal. That's the only way to have a successful partnership. I have dealt with a lot of these issues before. A recommendation that I have is to think though every scenario you can with the contractor and just be open with one another before placing it on paper. 

Start very small. From the moment you begin a partnership like this, it will be tested. Make sure to clearly define how/when the contractor gets paid. Do they come to the deal with cash or make it on the back end? Who pays for the construction costs (labor and material)? Who has ownership/authority of project timelines? Who pays if the project runs over budget? Having an open dialogue about any problems that may arise, responsibilities of each member, etc, will make or break the partnership.

You loose lots of equity/cashflow on a partnership. Are the numbers more favorable if you treat them as a Lender? They may be willing to accept 6%-8% on their money which means you keep all the ownership after it's paid off.

Start by calling the police.

If you don't have a strategy, use it reading until you find that strategy out.

If you do have a strategy, use it networking with agents, wholesalers, bankers, contractors, managers, etc. 

Well, it depends if the tenants are already at market rent. You will have a long vacancy if you try and overprice the property. They have a year left on the lease? Are you planning on living in the duplex? You can't really do anything until the end of the lease.

I would tell her you don't see an urgent or necessary repair but to keep an eye out if it worsens. Honestly, I wouldn't be too happy either if the stairs were coming apart. Either way, get a better/market rent tenant around summertime. Inherited tenants are never easy to work with.

HLOC can have low-mid variable rates and can be great for repeat use. 

REFI for a low fixed monthly payment and to retrieve a big lump sum. 

I would approach a fix and flip/multifamily purchase differently... there are a lot of factors to consider seeing as these are completely different strategies.

I would consider the age of the house and what the pipe is made up of. Might be worth looking into. I had to replace one before and it was super expensive.

IMO the cash flow isn't there. You can make $1500 a year cash flow on this property (which likely will get eaten up by expenses) or find two properties that cash flow $200 a month and gain $4800. Do you have an area identified yet? There is also value in debt paydown. All depends on the opportunity cost of the capital you have tied up in the deal.