All Forum Posts by: Kevin S.

@ty 

@Ty Coutts  Interesting points.  You mentioned things I haven't thought of.  Thanks.

@ty 

@Ty Coutts.  Thanks for your input.  Even though my question was framed leaning towards my son not being too exposed, is there benefit otherwise?  I would like to hear both pros and cons.  

I am new to REI and started late in my life. But I have been thinking to involve my son sooner. He is 23 y.o and about to start full time job. He is interested in REI, has good basic knowledge on REI and has more than enough saved up for down but hesitate because of current market, interest rate, rental demand, capex, first investment jitters, draw of stock market, etc, etc. My thought is to help him out by going in 50-50 partnership for many reasons: half down payment, half capex expense, strong co-signer on loan, me being local to investment property to take care of little things that need attentions (he will be out of state for his job/I will have PM), etc.

1.  What's the best way to do this legally?  Do we need an attorney to draft a legal agreement?  Do we just have a written agreement between father-son (is there a viable legally recognized agreement online to use)?

2.   Should he be on the loan, the title of property, insurance coverage?  Should he be exposed to all liabilities that comes with it such as lawsuit, history of insurance claims(I believe insurance have a data base of past claims that can affect future coverage), credit and what not at an early age?  Or can he be just a silent partner with his money and I have a separate agreement (legally drafted of course) without him on the loan, credit, insurance policy etc.  He will benefit 50% from cash flow(if any), mortgage paydown and appreciation without all the exposure.

I would like to hear from investors who have their kids involved, accountants, CPAs, attorneys, realtors and all.  Thanks in advance.

@Christian Artuso

Some mentors 'expect' things in return, which is how they want to operate.  They have a right. But I don't see them as mentor.  I consider them 'traders'. They are simply trading one thing for another. I did find a mentor on BP who expediated my experience with REI and continue to mentor me in my journey...all for nothing in return!

True story about my mentor- On one occasion I asked him why does he contribute so much of his time and knowledge to my journey.  His answer: "He is living vicariously thru this journey of mine".

I hope you and everyone new find their real mentor.

@Josh Smith

Why not just ask for $4200 from the first party and narrow the gap between the two and rent to party #1.  Tell party #1 that you have others wanting it, which is true.  Eviction headache and cost is something you definitely don't have to worry about with party #1, not to mention wear and tear.

@Jonathan Small

These are just general and common knowledge about Florida known to most.  Your post neither provides valuable or additional information nor did you post direct questions like the rest of us do.  

@Jon Martin

Are you investing in your hometown/state or OOS?  Are these Class C zip codes?  You are talking 2% rule!  Care to share more?  Thanks.   

@Jon Martin

Interesting take for sure.  With $100,000 cash in hand, the property will be more like in the 400K price point if he were to put 20% down, leaving 20K for closing cost and emergency $.

At the current interest rate and RE market is it possible to make 1K after monthly payment?  My property in that price range bought recently is negative cash flowing.  So I am all ears...

@Bill B.

It will give rise to a new option for younger generation.  A 40 yr mortgage!  

Like you mentioned about car buying.  Car buying are made 'affordable' with 6yrs payment instead of 5 yrs.  God knows at some point everything will be based on 60yrs/lifetime payment from day you are born!!

@Dennis McNeely

Have you used 'Nix' yourself?  How will interior light affect the result (cool white, daylight etc)?