All Forum Posts by: Josh M.

 Thank you @David Bond, I appreciate you sharing your experience with this.  This helps.  I intend to speak to a mortgage person this week.  If you have any you would recommend me looking into, I would appreciate it.  Thanks again for your time.  I hope you have a great week.

Great idea @John Underwood. Thank you! Would that typically be setup as an APR, so if it takes x amount of time to pay them off, I just pay them the agreed upon rate?

Thanks @Kenneth Garrett!  I appreciate your patience with a beginner.  You did a great job answering my questions.  I hope you have a great day!

No worries @Luke Carl.  I've known the guy for a long time, we are pretty close and he trusts me.  I also have various experience in renovation, construction, and in the RE industry.

You are correct, I have to start somewhere.   I want to get my ducks in a row and understand things before just jumping in.  I want to be respectful of him and all involved so I'm trying to do my due diligence and start this business by being professional and knowing as much as I can.   Thanks for all of your help.  

Situation: I'm a first time STR buyer. This would be my first RE investment. I have a person who will pay the down payment on an STR.

Goal: To own the property and exit the money partner from the deal once they've received their ROI.

Questions:

1. Do money partners typically leave the deal once they receive a certain ROI?
2. If not, do they typically remain partners in the investment?
3. How would you structure deals like this? I'm guessing this person will want to keep doing deals so long as their money is secure and they are getting the ROI they are looking for?
4. Regarding paying them back, do you pay them after you set aside taxes, CapEx, Cash Reserves, and Revenue(to pay mortgage, cleaning, other expenses, etc.)

Thank you for your help.

JM

Thanks @Adrienne Green, I appreciate the help!  I checked the local codes and they are good with it.  

Thanks for the help David Bilandzija. I'm sorry, I should have clarified, it would be my first RE investment purchase. I don't have 30% down. Is that what is required for an STR loan?

I do have questions about the financial side.  I may have a backer that will put down the down payment (not 30%), I'm not sure how to structure that or plan for their exit from the deal once they've made their profit.  I also don't know what kind of profit they should expect in being a lender in that manner.  Thanks again for the help.  

I'm connected with a Duplex owner that wants to sell a house that has a 3/2 and a 2/1.5 in it.  It's in Fountain Springs TN.  It was appraised recently for $260,000 and they are asking $265,000, but she said if an offer is made, she may take it.  It won't be on the market until after January and as far as I know, I'm the only one asking about it.  They are older and don't want to deal with it. 

For LTR she said she gets $950 for the larger unit and $850 per month for the smaller unit.  

I'm interested in getting into STR and I thought being able to have 2 units under one roof as my first would be a good idea if possible.

I also could probably turn it into a 5 bed/3.5 bath relatively easily if that would make more.  

This would be my first deal, I'm not quite sure how to figure out if this is a good deal or not for an STR or even a LTR.  I'm checking on Airdna, and Rabbu, but I think the OR may be inflated.  

I haven't been inside it yet, but I'm a bit familiar with the neighborhood and the homes are about 50 years old.  It looks like it needs paint and hardwoods refinished from looking into the window.  

What would you to do make a decision on this?  If you need any further info, just let me know.

Thank you for the help.

I found the following financial accounting course for free online.  

http://www.learnaccountingforfree.com/

I took financial accounting in college, and the course on the free website happened to be the exact course that came with my financial accounting textbook.  

I hope this helps.

I am coming.