All Forum Posts by: Justin Holliday

Thank You Shawn.

I am an investor in Texas and am interested in buying at the Sheriff's tax sale. I am fully aware of the matter of "redemption rights" in Texas and for both properties that are homestead exempt, as well as those that are not. My question is regarding the purchase of the redemption rights from the prior owner(s).  I would like to purchase the home at auction and then purchase said redemption rights so as to have flexibility as to what I want to do with the property.  If anyone has an example of a document that has been proven to hold up in this scenario I would appreciate any feedback on the matter. Again, we are not JUST buying the rights, as I know that is an issue in many states, but we would purchase the property at auction and then pay some extra to the owner for them waiving their redemption rights. 

Thank you Jim. So as to clarify a bit, we have access to money sources, but said sources will need to multiply over time so as to as to allow for growth.  We considered the EREIT as a vehicle for flexibility in funding moving forward. To your point, if we had all funding in place, we would do a typical GP/LP structure immediately. Also, we will have said agreements in place so as to delineate things no matter the structure.  As an example see RiseFund and specifically their fund that focused on commercial notes. We looked at that for guidance, but will be doing only residential, and our terms, raise structure, etc. will have differences.

A group of partners and I are starting a note buying company. We have a great source of notes that will be very attractive on the open market, as they will come from a source that we do not feel many in the industry have access to.  Our buy each month can be really large, but we are looking at b/w 1.0-1.5 MM per month, the notes will be in Texas, and we are looking to decide on a money raise structure. Because we have access to individual investors or institutional investor/family offices, we are thinking about the option of a typical GP/LP equity structure or possibly an EREIT with a fund that can allow for all types of investors.  Any feedback from the board would be really helpful, and specifically what folks think is the best structure.  The GP/LP structure has an expensive set-up, where EREIT, crowdfunding is not so expensive as a start-up cost.