All Forum Posts by: Nicholas Lohr

I'm trying to think about this from the tenant perspective.  What can I offer them besides that single document piece of paper in exchange for them paying me the deposit to hold money?  For example, how do I prove to them that I didn't just acquire a key to an empty building somewhere and showed them a unit that I didn't even own?

@Jay Hinrichs  

check out letter "D" here, http://sfrb.org/chapter-49-san-francisco-administr...

I feel like they wouldn't take the time to write letter D at all if investing security deposits wasn't allowed? Am I missing something?

@Craig Bellot  I said this right off the top before I even launched into the question. 

"As far as I have read this is a state-by-state law so I am ONLY talking about California here." 

Hey guys thanks for answering. I had forgot all about this question as nobody answered it for so long!  

Yeah it's definitely something that would have to be done at scale and at the end of the day we aren't talking about a ton of money but it's enough to at least consider it.

One thing I didn't mention is the capital gains taxes.  If one has to sell securities in order to repay security deposits that has to be factored in. Perhaps 10% of the total security deposits you leave in cash for the in between time you pay out a security deposit and the time you collect the new security deposit from the replacement tenant?

I'm going to broach all this with my accountant now that you guys reminded me of it. 

read through this, it may help.

https://www.biggerpockets.com/forums/67/topics/427862-questions-about-brrrrr-method

Is the 100K to buy the property out right?  

You need to figure in the acquisition cost, the interest expenses, all the other expenses, the holding costs, the rehab costs, and the after repair value.   And then the 70% ideally will cover all that.

What is your projected after repair value for the property?

Also why can't you get conventional financing with 25% down?  That's what I did and it worked out well.

This may have already been said but what about offering/ selling shares in specific deals in order to fund them and then utilizing the blockchain to keep track of said shares.  Investors could sell their shares thus providing liquidity to their investment which would also be an incentive for them to invest in the first place.  (a.k.a. they have an exit)

Pretty much like a REIT. Have to follow all SEC rules too obv.

In a shared equity investment I feel like a good selling point when trying to raise money for a deal would be to structure it in a way where your equity investors have the option to sell their stake to a 3rd party.  Obviously it would have to be set up in a way where those shares are not in control of the investment since they are the passive investors. 

Anyone have any experience with this?  

Is this what a private REIT is?

I know that the investors have to be Accredited but if the have the option to sell their shares to another investor does that investor have to be accredited also?

check out a Tenants in Common Agreement. I'm looking into it myself in order to avoid having to file for a whole new LLC. It's an expensive fee each year for a LLC where I live.

Full disclosure I've only begun to look into the Tenants in Common rather than an LLC thing myself so I'm no authority on the subject. Just throwing it out there as something for you to check out....

two partners own a property together. One partner wants out of real estate investing altogether and the other partner wants to stay in. Can the partner wanting to stay in 1031 exchange only his portion of the property?

i went the hiring subs route for my current project and my time for other things has completely disappeared.  im saving money but it's very bad for time and it's harder.  

however im learning a ton that i otherwise wouldn't.