All Forum Posts by: Louis Sulek

update - thanks for your advice gents

I was able to simply back out without drama based on the fact that there is no JV agreement without closing on the sale. Back to the drawing board!

I believe the JV agreement is based on closing on the purchase.. so if there's no close, I am hoping there's no agreement to worry about

 Thank you kind Sir, I think this is exactly where this is heading

What would be a reasonable finder's fee? purchase price is 372k

thanks for responding Jon!

Signed JV agreement, yes, but cannot find any termination rights, other than the many pages detailing what happens in case of refi or sale or default etc.

Finance condition hasn't been removed yet - still have a week! I could attempt to use that week to redo the JV agreement but the more I think about it, the more I just want the contract assigned to me and no JV. I assume that going this route would involve compensating her in some way?

howdy gents, thanks for your input

I'm pretty sure she won't go for that, but I completely concede it is not in my best interest to allow 50/50 with zero skin in game on her end. 

I was thinking about asking to keep the assigned contract and just offering her a finder's fee to get out of the jv contract, then just do it myself. it would cashflow as a normal rental but do better as an airbnb with even just 60% occupancy

It's unethical and likely illegal to just cut her out of deal, I doubt she'll accept being tenant, so I suppose my next question is how do I get out of the JV and keep the deal she put together?

Hello everyone,

I'll try to be brief! 

- I met a lady online who was looking for an equity partner in an AirBnB condo. She does all the management etc, I go on title of mortgage and do all the financing, and we split cashflows and sale proceeds down the middle. 

- I negotiated a preferred return upon possible refi or sale

- I was totally ready to do this until my mortgage agent told me I was giving up way too much, too much risk too little reward, she has no skin in the game etc. 

- a conservative projection has us cashflowing 1k a month, so we'd each get 500 

- there's money in the buy - instant equity around 20k

- NOI conservatively 100% after 5 years, so I suppose 50% each, so I suppose 10% / year /each.

- I found a company that has 23 AirBnB rentals in the same city and charges 15-25% of REVENUES ONLY.....

- I have cold feet now. Do I really need a partner? I know the partner would do a better job than the prop management company, but for 25%+ more? Not to mention appreciation - the partner would get half of that too..
- I have no AirBnB experience but believe I could meet with this company and do a decent job of overseeing them overseeing the property.

- what do you think??? back out of partnership??  financing condition is to be removed in a week I must decide very soon 

Please advise!
Thanks in advance

Hello from Belleville Ontario!

 Thanks Jon, I believe you, but that doesn't answer the question about big number of units at median rents - is Uncle G right or not?

Grant Cardone suggests large apartment buildings with median rents were virtually unaffected by the 08-09 crash. I'm not sure how to go about fact checking this, but if they are in fact recession/crash proof, that's a pretty big deal!?! Can anyone clarify? 

Hi Brandon, super, will read and comment, thanks!