All Forum Posts by: Douglas Dowell

It was pretty epic! I stayed there once in the summer in high school.

Hello Tom Goans. Its heaven on earth to me. Spending alot of time away these days unfortunately. Hows Englewood treating you??

Silvercreek now known as Solvista???

Hello Roger,

I am a little unclear about your business plan. Are you looking to operate the investment with the money partners sharing in the profit?

Generally, how you title the entity is not the concern. The central issue is are you offering a security?

The answer is found in SEC v. Howey which states the structure is:

1. investment of money due to
2. an expectation of profits arising from
3. a common enterprise
4. which depends solely on the efforts of a promoter or third party

If you say yest to all four then it is a security and will trigger the need to register the investment with the Feds and possibly the State regulatory agency.

Common ways to avoid the expensive process of registration is to structure an LLC with all members participating in management or a tenant in common ownership structure.

The other way to enjoy the benefit of raising private money is to avail yourself of the exemption rules.

If its simply a plain jane real estate brokerage I don't see anything patently wrong with the name.

Sweeeeet! Thanks for the info.

Welcome to bp Joshua! I have found the urban land institute real estate development handbooks to be an excellent resource. They also have some online education available. Check out uli dot org.

Did the contract contain a contingency for the variance approval??

If Bill said it so you can bank on it.

Congrats on the first deal! I would be most concerned about:

1. your risk tolerance with respect to your cash reserves. How badly will wide variation in collections affect your overall picture?

2. It can be a very profitable business doing Class D land lording but it does tend to be ALOT more management intensive from the folks I have talked to in that space. Do you have the time/patience for it?

As to the eviction if they are month to month I can't imagine any problem just serving notice and giving them the boot. Retaliatory eviction would be tough to prove as to the new owner.

I agree that sub metering is a good call.

I agree the carry cost and interest rate are not appropriate for a buy and hold strategy.

Mathematically it only works were some form of forced appreciations is occurring...generally fix and flip in the sfr arena.

Commercial Real Estate ie 5 units or more of multifamily does have a hybrid lending category called bridge financing. This is only appropriate when you have a turn around strategy with a clearly defined exit. For example if the project is only 60% occupied and you have a clear plan to lease up to 95% then it is the way to go.
In this case long term takeout financing is NOT available at 60% occupancy, therefore you have to get creative.

We look forward to learning more Mehran!