All Forum Posts by: Jim Pellerin

@Shane Craig Debt is good. That's how you grow. Make sure you underwrite the property thoroughly. What is the NOI/Cap rate and what is the cash on cash return? Look at their expenses to make sure they included all the typical expenses like management, maintenance, and vacancy. Check for any major capital expenditures and see what was done in the last 5 years and what might be required soon. Just because the terms are good it doesn't necessarily mean it's a good deal.

Quote from @Jacob Lopez:

(Single family property)

What are the numbers?

Quote from @LD Ward:

@Jim Pellerin

Hi Jim, I have not! Can you point more towards more info on private equity?

There are quite a few available. Some require you to be accredited. Crowdstreet always has some good offerings.

https://www.crowdstreet.com/ 

Quote from @LD Ward:

Hello,

I currently work full time so looking for an out-of-state turnkey property with solid PM. Specifically on the lower end such as Memphis, Dayton, Baltimore, Kansas City, etc. I know some reputable turnkey providers but there’s a couple things I see wrong: 1) the markups are astronomical and 2) there’s a waitlist. I understand these companies need to make $ but anybody have suggestions, specific providers, or advice for finding a provider and getting a relative value?

Thanks,

LD

Have you thought about investing in a Private Equity deal. It's a turnkey solution on steroids. You benefit from the cash flow and the appreciation and you own part of a much larger building. There are some excellent offerings that show returns at 20%+ based on historical performance. That means you double your investment in 4 to 5 years. And you are totally hands off.

@Luke Hutchins Yes, you want to set up a Limited Partnership. The common structure is that you pay your LPs a preferred return of say 8%. Then any profit after that is split, like you suggested, at say 20/80 (the most common). 20% to the GP and 80% to the LPs. Keep in mind, as the GP, you can also charge an aquisition fee, a management fee and a disposition fee.  

Quote from @Caleb Vislisel:

Thank you for the response @Jim Pellerin

Is it necessary to get this joint venture drafted by an attorney, or would it be sufficient to just fill in the blanks on a template? 

Yes, I would use an attorney to prepare and control the execution of the contracts.

You need to go higher for your goals.

What is it you are hoping to achieve with real estate? What are your short term and long term goals? What are your real estate income strategies? What are your real estate wealth building strategies?

Quote from @Celestino Moreno:

In the contract for the part where it says Cash Due to seller at closing, do we include our assignment fee with it. For Example If me and the seller agreed to $500,700 do I put that number or do I add my $20,000 assignment fee on top of that? 

Your assignment fee is specified on the assignment agreement not on PSA.

Quote from @Jose Pastrana:

Hi I’m looking for local Houston REITs. Anyone have any suggestions which groups have a high membership? Looking to specialize in wholesaling.

I'm confused. REIT = Real Estate Investment Trust. What does that have to do with wholesaling. 

Quote from @Tausen Richmond:

With no previous real estate experience. I am wanting to start out with a 4 plex. I have 100k for down payment. Just stated working again only making 25k a year. Is that even possible? What kind of financing can I get?

There are private equity investments out there with returns of 25% or more. So you could literally double your salary by investing in one them. And these are experienced companies who have been around for awhile and have $5B in assets. Some dont require you to be accredited. Check them out.