All Forum Posts by: Austin Fruechting

Today I just closed on another 32 units across 8 properties. 

Details of the portfolio deal here: https://www.biggerpockets.com/forums/311/topics/440161-offer-submitted-on-32-unit-portfolio

I'm celebrating this evening with a limited edition cigar from 2010 and a delicious rare bourbon to match. 

June 2010 was when I bought my first investment property. 

This brings me to a total of 141 rental units across 58 properties. Not bad for 7 years!!

My story of reaching financial freedom here: https://www.biggerpockets.com/forums/48/topics/429980-officially-financially-free-at-32----exciting-day

I've been without a day job for almost 2 years and we've now hit enough cashflow for financial freedom for wife to be able to leave her job if/when she choses.  Story here: https://www.biggerpockets.com/forums/48/topics/429... 

We started with figuring out the life we would want to live if we were free from work, then calculated how much cash flow it would take, and we've crossed that barrier.  

It's important to have something to retire TO, not just retire FROM something. Productivity is a big part of happiness, and being productive in the things you want to do maximizes that.

I still look for and do deals because I really enjoy putting deals together.  I started up a blog sharing what I've learned to help other investors and spend some time here to help other investors. 

Alliance Restoration is incredible, but this may be too small a project for them in the summer (busiest time of year).  

It depends....

If the loan is in the LLC name, most likely you'd both be on the loan. With my bank anyone that is 25% or more owner has to be underwritten.

Even if a bank would be willing to write the loan for only one member of the LLC, a solidly written operating agreement can provide some additional legal recourse of obligations to the LLC in an event like that.

It's good you're thinking about all of this.  It's best to have all the scenarios thought out, planned out, and written out in the operating agreement as opposed to having to deal with stuff as it comes up. 

If rehab guy is on the LLC, and loan and title will be in the LLC name, rehab guy will be on the loan and be signing personal guarantees in most cases until you get into much larger non-recourse loans.

Also in your scenario, take a look at the other side... economy booms, it becomes worth $700k and they sell.  The cash guy is the only one on the loan and title.  Cash guy could sell, get $300-400k and rehab partner has no real recourse to claim he's owed any of it. 

land - $9,000

building - 74,700

total - 83,700

tax assessment % - 40%

number used to calculate taxes - 33,480 (83,700*40%)

Awesomeness and congratulations!!

Listening to it now.  One of my favorite quotes on "Luck" was from Chris Sacca: 

"I may have been lucky, but it wasn't by accident"