All Forum Posts by: Jeffrey Holst

I wouldnt do it in an LLC you currently own, Confirm with your lawyer of course but it seems to me that you should form a new entity that the two of you co-own in some fashion. If I were doing that deal i would have the investor give the new company the $200K and have you give the company $50K then pay each of you a preferred rate at like 6% interest only from the company. I would then take as much equity as the investor would agree to give me. Id probably ask for 75% for me and 25% for him/her. This would mean the first 15K would go 12K to them and 3K to you (each year) and then after that youd split it according to your equity positions. I alway pile those preferred returns so if one year you only make 10K you get 2500 they get 7500 but the next year the amount owed before equity based split is 20K (the unpaid 5K and the 15K preference from the current year ie. they get 75% of the first 20K and you get 25% of it and then after you are back to the 75% for you and 25% for them.

Or something like that

@Jon Kelly you can do just about any structure that works for you and your potential investors. Might be a simple 50/50 where everything is split or an investor might want a preferred rate if return before the split is you split everything after they get paid a certain return. They might be happier with a higher rate and no equity. There are so many ways to sort this the only limitation is your imagination in how you want it structured just make sure it works for you and your investor/partner and you will be ready to roll

Originally posted by @David Bringer:

Hi Jeffrey and Dan,

My wife and I currently live in Hudsonville and are a young couple that are looking to get into bigger multi-units in this area. Currently we have managed to obtain a 4 unit and 3 SFH and are looking to possibly do a 1031 exchange into a bigger multi unit or possibly use HELOC $ to work a bigger multi-unit complex deal. Any chance that I could join you two gentlemen in this meet up and be a fly on the wall? I am eager to learn as much as I can about multi-unit complexes, especially around my hometown area of Hudsonville, Jenison, Allendale, and Zeeland. Also Jeffrey, I like the idea of commercial property, as my wife is talking about opening up her own practice and will need office space. So we are also in the market for a multi unit office space as well.

Thanks,

David

 I am in Hudsonville now.  I don't know that I'll have time to meet this weekend and Dan and I haven't planned a meeting as of yet.  All that being said I love talking about real estate and am in Hudsonville 4-5 times a year so hopefully we can chat sometime.  

Short version is like everywhere prices are rising but there is real growth and there are still many opportunities.

@Sean Larson I think that if you have cash and a decent understanding of your market you should have no issue getting property three. As mentioned a good realtor would be helpful also you might consider if perhaps there is another reason you haven't bought a third property. Perhaps you dint want the hassle or maybe you are looking for a partner or are just not mentally ready. Not trying to be critical just an observation. Final point make sure you know what byou are trying to find? Are you looking to buy only in GR or would you consider other markets? Are you looking for single family, multifamily or commercial? Etc

Next time then

Originally posted by @Dan Farkas:

I would love to chat. Just can not this week! 

@Jonathan New my experience is that banks always want something left on the table, sometimes you can talk them in to you leaving in 10% instead of 20% but the example i gave is really just to show the reason people would buy repairs on the HUD

Hello,

I am originally from Grand Rapids MI, I invest primarily in Tennessee and Metro Detroit but I often find myself back in Grand Rapids, Hudsonville, Jenison etc.  I have been considering expanding my investing footprint back to my old home area.  I will be in town this weekend and Monday and I am interested in making some new connections in local real estate.  Not sure Ill have time to meet up with anyone this trip but I am in the area 5-6 times a year.  I invest in many different property classes,  I currently own or partner on single families, duplexes, a few apartment buildings (12, 19, and 32 units) and am under contract to buy a 12K sq Ft office building, and a 30K sq Ft strip mall.  

I am particularly interested in forming banking and broker relationships but love talking real estate so I am happy to meet just about anyone in the BIz. 

@Kent Caldwell I do mainly Metro Detroit but outside of the city.

Depends on how leveraged you are but I think you can still get a couple hundred a door on single families and duplexes and about $100-150 a door on larger multis.  The big take away here is prices are up but so are rents.  There are aot of "deals" out there where the price is up but the rents are not in line with market.  Those are a possible opportunity but the best deals are where they have already proven the higher rents.