All Forum Posts by: Rohan J.

Thanks @Darren Eady . Totally agree on the Cash is King. I'm fortunate to be in this opportunity, I just want to make sure this is a win-win for both of us, and that we can build a great long-term relationship.

The only other place where his money would work this passively would be in VG index funds, making 5-7%.  My hypothesis is that this should be an easy win over that, but I'm happy to hear others critique my assumptions.

I live in Los Angeles, and I've been investing in multi-families in the midwest for quite sometime now. A business colleague, who I've worked with in the past and trust 100%, mentioned that he wanted to invest in real estate as well, but didn't know how to get started. He hates the LA market for obvious reasons, and we both have similar goals of seeking buy & holds to generate cash flow.

He's proposing a partnership where he puts all the money for the down-payments and I find the properties, which I think is very interesting since it requires no money from my end. 

My duties will most likely include flying out to the midwest, meeting with agents, closing deals, and setting up the PM company/minor rehabs, while he will be providing all of the capital. He trusts me 100%, and he is pretty much going to let me decide what properties we should go after.

Now, my question for BP.... what do you think would be a fair equity breakdown for each of us? I want this to be a win-win and for both of us to feel really good and excited about the new venture.

As of right now, we're thinking of 65% him and 35% me, since I never have to put any money down. 

Simple example of how it would work with a property we're looking at:

Duplex for $80k, rents for $1250.

He puts down the 25% ($20k) and takes care of closing costs to acquire the property.

Lets say all expenses total for $600/mo. Of the remaining $650, I would get $227.50/mo & he would get $422.50/mo. 

We would split costs of all expenses and repairs, and if we ever sold the property... he would get his money back first, and then we would split the profits 65/35.

Is this fair, or is either of us asking for too much? We will obviously set this up through an attorney, but I'm interested in hearing BPs thoughts on the appropriate % breakdown for a situation like this. He has a lot of money, is very interested, and could easily help me acquire 2-3M worth of properties without any money down.

Also very interested in this! Please let me know if you find anything @Rick Sarouk 

@John Horner 40 properties... nice! Did you pay cash for them or do you have mortgages on most?

Reason I ask is because it's getting harder for me to get a mortgage (7 rentals) and I need to find someone local that can work with me to buy more multis in OH.

Do you have any recommendations on any good local banks / credit unions in Ohio that work well for out-of-state investors? (buying near Akron + Columbus)

@Tony R. Yagiela appreciate the info man - thanks for the headsup!

1. Neighborhoods will definitely help you narrow it down - look for good school districts, parks (families love parks), and generally less crime rate
2. Look for Economic Engines of stability - what kind of corporations are headquartered nearby? Will your area always have renters at the price? basically job stability
3. What kind of future commercial development is coming in - new malls/shops/etc
4. Also proximity to food/restaurants/shopping/etc
5. Not near any flood zones/major rivers/ loud train tracks/minimal liquor stores

What do you guys think about the job stability in North Canton, Akron, and Columbus? Are there any strong corporations out there? 

Would love to hear more about the economic engines out there.

Thank you @Steve Vaughan, @Andrew Syrios, @Steve Ipock, @Sam T - this is extremely helpful and valuable information. Appreciate all the advice.

@Brent Coombs Micro-managing? lol, she does 99.9% of things without me. I don't think it's appropriate to call someone a micro-manager based off of my desire to help out once.

Reality is that this is the first time I'm going Section 8 on any of my properties, and I'm a little nervous, a little more cautious, and trying to do what's right for the business - don't really see anything wrong with that. She is asking me specifically if there's anything extra that I would want to ask candidates, and I appreciate that.

I do have a Property Manager, and she will be doing a majority of the candidate sourcing/screening. However, I still want to help screen this tenant, and I will be acting as a final check to make sure I'm comfortable with the tenant - just hoping the BP community has some tactics to make sure we don't miss anything.