All Forum Posts by: Account Closed

Perfect.

It should you have done your homework and you have checked with professionals. Granted it might only be their best guess but it is better than your best guess.

If you want to bring in an investor you need a clean plan that shows what will happen when, how much it will cost and how to manage the over runs that always happen.

Work hard on getting a good looking package together. Expect that even if you show a great deal to some folks the timing is just not right for them. Network and ask them for referrals.

If you eventually do the deal document the good, the bad and the ugly so you have a full story. Then communicate the success with all the details available for review if investors want to check.

You are building a 'portfolio' of projects and a consistent way of presenting them so that people can get their head around why they should invest with you.

Each possible deal becomes a marketing tool to attract investors. You said you can find a lot of deals so do not worry about any one if you can not find an investor initially. Keep building the network.

William - Are you talking about PACTrusts from Bill G?

Good advice in terms of how you can only get 2 out of three.

I really like the quote.

Brian,

I get the point about being an engineer.

I have been told more than once that I focus too much on the details and why they matter. I generally say that as an engineer I am paid to deal with the details. Some get it and others do not.

Lets stay in touch. Engineers need to hang together.

BTW - When I worked in Silicon Valley I found that many engineers liked REI. Lots of numbers and no real need to be slick or the life of the party.

Mold is a dangerous word.

Do you have any professional qualifications so you can safely advice a money investor why the mold is not an issue?

You need a slam dunk deal and you will find an investor. Make they nervous about the unknown risks and you are DOA even if the lender wants to deal.

There could be some serious defects in the ceiling. I would go slowly when it comes to pulling it down. New sheet rock on the ceiling is a fair bit of work (weight over one's head).

Assuming this is a rental.

Will a tenant pay more if you do the work? Will you have an easier time renting the place (top choice for people vs. last on this list). Consider repairs that will reduce future maintenance if that is possible in this case. Avoid changes that will only make for more work when vacancies happen (the comments about paint vs. leaving the paneling). Stick to code in all cases and deal with habitability issues if you are renting on Section 8.

From the outside all houses will look the same. It might reduce the damage after they kick the door in.

Is there any way to make it clear that your PEX property is a bad choice so they just avoid you? Maybe a bit much to ask but still I figured I could ask.

Keep the various elements logically distinct when you work the options.

1. Corporate tax benefits are few unless you have a full blown C corp. At the same time the C corp is bad for assets that rise in value and which are held long term.

2. Liability protection comes from having the property owned by someone other than yourself. It really is a transfer of the exposure. Unless you are graduating with significant assets having a property in your name vs. a company is not all that different. In both cases there is little to lose. Keep this in mind as you do not want to create lawyers that serve little benefit.

3. Financing will be tough with any structure. Likely you will need to finance things in your own name rather than the company until the company is established.

4. You can use the entity as a way to clearly organize the interests and responsibilities of the people who have a stake. Partners, employees, etc.

5. Remember liability insurance.

6. Few people that I have spoken to have used an LLP structure. Check with the state to see if there are any restrictions on what sort of businesses can use an LLP. Even if you can use an LLP figure out why that is superior to an LLC or other entity. LLPs were first established for partnerships (lawyers, accountants, etc) where they provide personal service but wanted to contain the liability.

7. Match the entity chosen to the business plan. If you are doing short term deals then there are few long term tax advantages. More business deductions can be good (medical, dental, vision, car, etc). LLC is different from a C in that way. Pension details can change also.

Bottom line is to pick something you understand, focus on making money and follow the rules when it comes to how you operate any entity. Run it incorrectly and you defeat the liability protection.

Note that you as individuals can still have liability if you are the people doing the work and making the decisions. Speak with a lawyer to understand what is important in terms of policies and procedures vs. just the entity choice.

One thing that I like about Facebook it how fast it evolves. If you want to observe and find the newest ideas in social networking Facebook is definitely one place to look.

There is a lot of stuff that might end up being more junk than anything else. Still you rarely will miss a social networking trend by watching Facebook.

CJ,

Welcome.