All Forum Posts by: Jerel Ehlert

I started out as an investor in 2000. It was only after the crash that I matriculated to South Texas College of Law in 2012. Passed the bar in 2015 and been working with investors ever since.

The formulas tend to be self-correcting for market changes. 

If a lender has a 1.25 DSCR, and rents go down (uncollectable goes up), NOI goes down. That means the max loan size goes down (all other factors remaining constant) => self-correcting.

Yep. I'm not following either.

 There are so many different ways to put a syndication together that it is impossible to make a determination on whether a license is required. Almost all syndications are securities that are not registered and issuers don't require a license. Registration is required if there is not an exception or exemption and broker/dealers need a license.

Rehab/flip money should resemble HMLs on terms. Buy/hold money should look like conventional terms.

Everything will be regional.

Regardless, all loans should have a promissory note and lien drafted by a lawyer working for the lender and closed at a title company/fee attorney office with a title policy. Lien should be recorded in the public records. Lender should perform due diligence on borrower and property.

There is no limit on the number of houses you can sell, with or without using a real estate agent.

Sounds more like how you will be treated from a tax p.o.v.  One or two, probably treated as long/short-term capital gains. More than that, will probably treated as a dealer, meaning less favorable tax treatment.

There are a number of events around Austin in normal times. Most have gone virtual for the last several months. Check the events section on BP, MeetUp, and some of the facebook groups on REI in Austin.

Todd Taylor 

You need to read and learn about syndications before talking to a syndication attorney. It will cost $10-15K on the low end to form a syndication. Debt funds (because that's what you are doing) are more complex than an apartment syndication.

Yeah......

This is going to blow everyone's mind: Houston does not have zoning.

That said, your property's HOA will be your limiting factor in Houston. Code enforcement if you live in the city limits will come into play, too.

Just figure that if the property is in an HOA, you won't be able to build outside the structure. Garage conversions are about as far as you can push.

Good luck!