All Forum Posts by: Joseph Firmin

HI @Macy Floyd! Welcome to BP! I would say start with your goals. Get crystal clear on your WHY and then develop the action plan to achieve it. It is easy to chase the shiny object in real estate with so many different niches and asset classes. If you have clear goals you will be able to use them as a barometer to understand if what you are doing is the highest and best use of your time and where you want to end up. All the best!

Depends on the investor... can’t say, what are his other alternatives, it could also be a different equity split. Don’t assume anything. Just offer a fair deal for a fair projected return.

It would still be a return in his capital invested, so if he invested $100k, and for his equity share received $10k I distributions during the year, he’d have a 10% return. So if it was a 50/50 split, the other partner would also have received a $10k distribution. 

@Paul Rush - is there a zoom meeting link for the meeting since I'm not in town? 

Good for you @Blake Bittner! If you don't have a credit history or a full-time job, you'll likely need a co-signer on your first loan. I'd get W2 income ASAP - so go get a job if you don't have one alreaedy where you receive a W2. That will help with the history. Also, ask your parents to put you as an authorized user on their credit card (so you can build history - assuming your parents have good credit). Once you have a credit history, and even if you don't, find a realtor, and the rest of your team (Property Manager, Contractor, etc.). Good luck!

The interest rate would be lower (typically) on a mortgage than a HELOC, but if you got a 1st lien position HELOC on the new property, that would be great, then you could use the cash flow to pay it down.

Hi @Kimberly Gamez, yes you can ask the lender to put multiple units/properties onto one loan or even package them into a portfolio loan. The bank will typically tell you if they can't do any more loans for you though. They may even have other options for you since you've done a lot of business with them.

Not that I know of Mike. You could just take the returns and split them per the equity structure though, based on each person's capital contribution - pretty straightforward.

We keep ours in 1 LLC in a location and have an umbrella policy that covers them. We do not have 1 bank account per property, but 1 bank account per LLC. As you would expect this can get cumbersome and unweidly trying to organize many different bank accounts and entities and doing it all legally. It's up to you though and your own systems. If you want to cap the # of properties per LLC at a specific number or per bank account then fine... no issue. Just each LLC must have it's own bank account. Speak to someone at Corporate Direct to help you out with ensuring you set up the entities correctly.

Hi @Grisel Lopez! You're looking for investors who will put up the money for your flip? Go to your local REIA group, join the local facebook real estate group - lots of investors in those places.