All Forum Posts by: Joseph Firmin

@Kori Kelly, you could structure it either way, really up to you and your numbers. If you go the debt route, just structure it as a loan, get a promissory note and amortization schedule and pay on it whether your property performs or not - but it would be in second position to main lender on the property. If you go the equity route, you can give a just amount of equity for the investment. If it isn't enough for the costs you'd incur, then just make it reasonable. I know that is vague, but if you are putting up $20K and you found the deal and are managing it, ran the numbers etc... your work should be worth more than 60%. If this family member is only putting up the cash, then it is essentially a passive investment for them. They should know though that it also means that if the property doesn't perform, they don't see a return. The debt vs. investment discussion needs to happen. 

This is a hairy situation, especially with COVID and being able to evict these tenants. You may have problems with your lender providing a loan on a struggling asset, so be prepared to find a lender that will lend on this. I'd be sure to include in your purchase agreement that it is contingent on financing and have a COVID clause about being assured access to the property. It sounds like you'd want to start fresh with new residents that you can choose, but a vacant property may be an issue for the lender unless you have the W2 income to show you can support it.

Welcome @Christopher Hamburger! Enjoy the journey - and continue to remind yourself that it just takes action, everyday, consistently. Persevere and you'll get there. Reach out if you have any questions, this community is very willing to assist. All the best!

If you want to sell and the price is to your liking, then yes 3% is normal. Since you already signed it is reasonable to go ahead. An agent's typical commission is 3% anyway unless you were planning on marketing and selling this house yourself. If you go forward with the sale through your PM, you can always negotiate all other parts of the sale, for instance, making it an "AS-IS" sale so you don't have to make any additional property improvements prior to sale and that the current resident cannot come back to you requesting a credit for things found during an inspection. 

Hi Dr. C, I'd focus on what aligns most with my goals and peace. If I'd be more peaceful starting investments in my new home (SC) and getting a fresh start - then great, I'd do that. But if that isn't aligned with my goals and wouldn't bring me peace knowing that I'm off track, then no, I'd hold it and the NOI and stick to my guns. Another thought - given a settlement and to ensure a fair split, sell both and split it all evenly, then there's no feelings of one got a better deal if things don't go well on the commercial sale.

Hi @Rachel Santos! Yes, you can do it. Read David Greene's book: Long Distance Real Estate Investing. That book gives you the blueprint to do it. All my properties are out of state right now. Look in the South - TX to North Carolina. No specific markets, but I'd choose one you have a connection to - a good friend, college town, where you like to visit/vacation, etc. Somewhere you can move quicker because you know it better.

If you don't work on your business but in it constantly, then it will always feel like a side hustle. Sometimes a small thing like getting a brand made on Upwork or getting business cards can help with the "feeling" but in the end - you have to believe in yourself and where it is you want to end up by when. Get that CLARITY and the feeling won't matter because you'll be on the journey and living it.

Just pay for skip tracing, not expensive at all, you'll spend too much time otherwise. Check out LeadSherpa.

We've worked with CSC Serviceworks, so good so far.

Not enough information to answer. What would it rent for? What are expenses? Property management? Have you run it through the BP calculator? What is your mortgage payment? Walk through the numbers and they won't lie.