All Forum Posts by: Peter Mckernan

Hey @Karen Margrave thanks for the invite! I have actually been down to the meetup once and I need to come more. @Joe Homs has been very instrumental in helping along the way through my real estate journey and also was there on my first time visiting the meetup! I have been working randomly on the nights of this meetup, but I just looked at my schedule and will make September's meetup! Thanks for mentioning me on this post to give me even more of a push to be down there to network! 

@Steven Story I know that it seems to be high priced around areas of SoCal, but just dig deep! Rome wasn't built in a day and neither was Warren Buffet's wealth! Just keep the grind going and look in markets you know! Stick to SoCal and once you hit the wall and try to press on to the other side that's when you'll start getting creative in picking up investments.

@Aaron Mazzrillo hit the nail on the head. The deals are there, they just need to be uncovered. 

Welcome @Randy Roberts to BP! This website has so many things to help get you leads, get more knowledge in an area in real estate you need help with, and get more networking contacts for future business. Glad you made it on the site and if you ever want to sit down and chat let me know! 

Peter 

@Jerusha Holder I became an agent to help reduce the acquisition costs of properties I purchase for investments, and I have only been an agent for a little less than a year. If you are looking for a rewarding career that gives you motivation and goals to fulfill, than a real estate agent is it! Many other jobs do not grace a person with the milestones and accomplishments that real estate can give an agent. This is something that may reduce the enthusiasm of going to work for a company that does not include these types of incentives in their culture. I know that not all companies can provide the ability to give the big commissions that comes by selling a house; however, I speak about the goal setting and fulfillment that comes from the harder you work the more you accomplish and achieve. It's the old saying, "The harder you work, the luckier you get."

In any field of work you will find bad press on someone or something; but to say that is the way it will be and everyone is that way is very cynical! You should not believe everything you read, and you should always look at everything with a great and positive attitude for what you can add. As a brand new agent you can bring other ideas and new outlooks to a company or problem that can be your niche (the problem solver). 

You are lucky to get into a career that shows you the truth behind working hard and getting great compensation for that hard work. It is also a career that gives you feedback every day. The feedback comes in the way of sales and deals. This is a great way to gauge your performance. 

Good luck!  

Hey @Benjamin Ezenabor

Welcome to BP! I have visited Houston and it is a great town! This website is full of great resources and people! Good luck with your real estate endeavors! 

Peter 

Thanks for the help @Steve Vaughan ! 

Hello everyone,

I have been searching for the answer to this question through many different sources. I spoke with a lawyer today that gave me some insight, but did not have an exact answer for this question. I have also spoken with a lender that was unsure, so now I turn to the forums since I know there are so many knowledgable people on these subjects that could help me out with this question.

I formed an LLC with two business partners and we are going to move one of the partners to a more passive investor position. Since we are doing this we hit a wall wondering how can we get conventional lending for a buy and hold property. For example, lending for a four-plex with only two of us acquiring the financing and only use our third partner for the downpayment/rehab costs?

We want to use him for a portion of the downpayment/rehab costs and give him a return on his money, but not use him for a third borrower. I know that we can change the operating agreement to anything we want for positions and even vote to have him out of the LLC with the majority vote. Would it be better if we had a majority vote and made it just the two partners within the LLC and use the third guy to fund our needs from a private money investor outside the LLC?

It is just tough to figure out how we can use his money for help with financing, but not make him give all his financials to the lender, and also not use his credit score since it's pretty low compared to the two other investors within the LLC.

Any suggestions or knowledge will help! Thanks! 

Peter 

@Account Closed Thanks, and yes, we are trying to ask for some back nicely. We'll see! It very well might be a pretty expensive learning experience. 

Hello all,

I want to throw this out to the BP community and see if we have a foot to stand on. So, two business partners and I were just in escrow on a listed "duplex." We are 25 days in on a 60 day escrow. The escrow is 60 days due to getting a tenant out of the mother-in-law's quarters. We have removed contingencies as well.

This is where I will shorten the story to get to the point quickly. They listed the property as a duplex. The property had three structures on the lot. One was the front unit, a 2/1; the second unit was a separate mother-in-law's quarters, a 1/1; and the third structure was separate and it was a garage. We got an inspection and appraisal done. The appraiser stated that the unit in back was never permitted for a second unit (so, it was a SFR).

We have been working with the city and sending our GC down to the city planning department to see how we can make the second unit a 2/1 and a portion of the garage a 2/1. We were planning on permitting it all legally to be able to get the cash flow and later down the road sell it as a true triplex. The GC was told just two days ago by the senior city planner that due to how the lot was developed it would never be legally permitted for more than a SFR. This is because the property was developed prior to 1955 and that is when they put some more requirements into the city planning code that this lot does not fit within.

So, with all that information, do we as buyers have backing to get any of the deposit back since it was listed as a duplex and we finally figured out that we will not be able to make it a duplex as listed, or even make it a triplex? I know we have lifted contingencies, and that is where we will have the biggest problems getting any money back.

Thanks,

Peter 

Hey @Connor Bell

I would chat with a lawyer to confirm the decision, since I do not know if it is a good move to place your primary in an LLC. I know many people put their primary within a trust and that is not an issue (I know that this is different than entity perfection that an LLC gives you). I do not see that it is a big issue to having a primary within an LLC. That's just me though and not a lawyer talking. Maybe @Steve Vaughan can explain more on why it would the lawyer stated it is not a good move.

You should also know that you'll need to form the LLC and then before you perform the movement on the deed you'll need to notify the company that holds the loan. If they see this change they can call the loan, which will create a lot more work for you.

Good luck!