All Forum Posts by: Pablo Flores

I'm sure this question has probably been beat to death but it seems like everyone has conflicting opinions on this. Is it possible to transfer a property under my name that has already been purchased into an LLC? I've read that doing some will activate the due on sale clause, and I have read others saying it is possible if I transfer into the LLC but retain my name on the loan. Looking forward to hearing from you guys!

What do you guys think about placing cameras around the property? Not inside or course . I am getting ready to launch a property and have 4 cameras around the home, one of which faces the pool area. I’m reconsidering wether placing cameras in easy to see places would bother guests.

Anyone have any knowledge on the success of STRs in wine country? What are the occupancy rates?

Seems like a homerun to me but i don’t know if I’m missing something. Nightly rent seems good and it seems like a year round destination.

Thanks for the input!

@Ben Leybovich No they would have no say in day to day management of the property. That would be my job.

Thanks for the referrals! PM's sent!

I have been playing with Michael Blanks Syndicated Deal Analyzer to see how different splits will affect the return and this is what I came up with. I don't want to get too greedy on this first deal so I am only going to get a small split for being the GP. There would be no preferred return since we are all sharing in equity in proportion to how much money we put in the deal, in addition to my extra 20% cut for managing the asset. My main question isn't necessarily how to structure the splits in  the deal, but what legal entity would be best in this scenario. 

@Theo Hicks Do you think I could do this as a manager managed LLC without having to do a syndication? I want to avoid all the overhead costs since its a small deal with only a few members, but still retain sole control as the GP. That is the dilemma!!

Hey guys,

     Can you recommend any commercial brokers and property managers in the area that deal with medium sized multifamily properties? I am looking to invest in the area and will be flying out there in a month so I would like to start building my team now. Appreciate the referrals! 

Some amazing advice here. Thanks guys! Let me elaborate a little further since I wasn't so clear apparently....

@Lennon Lee I am brining the other 25% of the equity. My other two partners would only be financial partners and would not be involved in day to day operations at all. And thats how they want it to be. What is the difference between a member managed or manager managed LLC?

@Ben Leybovich Is there a way to structure this where the other two people are limited partners since they won't and do not want to take part in running the deal, but not have it be a syndication but still receive equity in the deal? Overhead costs would be too big for a syndication and I don't really see the point since theres only 3 people going in on the deal.

@Omar Khan Definitely don't want too many cooks in the kitchen, and they don't aspire to be cooks as well. They just want a slice of the pie. And I definitely don't want to get too greedy which is why I want to set this up the right way where they get a nice chunk of equity without being managing members. I understand the true value in that first deal will be the experience and building that circle of influence. 

    This is probably the most confusing aspect of multifamily for me and everywhere I look I seem to find different answers. How would I structure my first deal between two other friends and I? I would be the one finding the deal, underwriting and managing the assets while they would be contributing about 75% of the down payment. We would all have equity in the property. All three of us would also be on the loan.

Ive heard lots of terms thrown around and I'm not sure which would apply to a scenario like this. Syndication? Joint Venture? LLC? Member Managed LLC?

     Secondly, would I need to set up this structure after before I apply for the loan or once the property is under contract?

Thanks guys!!

@Kellen King Thanks ill be reaching out to @DeWitt Gibson!!