All Forum Posts by: Rohan J.

Thanks for all the input guys. I think I misunderstood and thought the 50/50 agreement was for buy-and-hold rentals.

I'm sure there are people who have partnerships with investors to completely finance their rentals, but it looks like there is no clear cut answer/guideline on what equity the "finder" usually gets (assuming he puts no money down). 

I'll try to find a few people at my local meetup and hopefully one of them has been involved in a similar deal

I agree to an extent. 

There are plenty of people who buy properties that are just straight gambling (they don't understand numbers, they expect the house to just appreciate, they buy and end up putting in money every month, etc).

Having someone who is doing the right work and has experience (not saying I am the right guy) would definitely be worth a piece, especially if the guy with the money has no interest/knowledge of finding good properties. 50% of a good deal is better than 100% of a huge mess up.

@Daniel Dietz  This is for buy-and-hold rental properties.

Just trying to see what the standard breakdown is for partnerships where one provides money, other provides research/deals. We would still use a PM company as we are interested in out of state investing.

Thanks for the advice guys. I'm more interested on what the typical "50/50 deal" is composed of when one person is doing all the research and finding, while the other is providing all the financing?

Lets assume that neither of us are interested in paying one for research/deal-finding. 

How is the cash flow/equity split? Is it just 50% of NOI goes to 1, and 50% of NOI goes to the other ? And both own 50% of the property?

The reason I ask is because that seems pretty steep for the guy providing all the financing, and I want to be fair, as I will be working with him for a while .  I just want to make sure I understand the main fundamentals of how a 50/50 deal is stuctured, before we even go to a lawyer (which we will).

Maybe @Joshua Dorkin Could chime in here :)

Thank you @Anna Watkins ! It's funny you sent this message, because I was typing up a response in that thread you linked just as you were replying to mine :)

Would love to hear more about your agent in Atlanta. Will send a follow-up.

so glad I found this thread! I'm considering buying a multifamily rental property in Atlanta, and I'm super unfamiliar with the area (i live in Los Angeles).

What are your guys' thoughts on the numbers in this images? 

How does the crime, job stability, community, and tenant-demand coincide with each number?

I'm heavily considering investing near downtown, which is why I ask :) Would love to hear your guys' thoughts 

Thanks in advance!

Okay, here's the situation:

I have a partner who wants to invest, but basically is relying on me to find the good deal. I see a lot of these 50/50 deals where there is someone who has the money, and someone who has the "brains".  I'm curious to know what the general best practices are for this partnership?

a) Does one generally put all the downpayment/financing, and then at the end of year they go 50/50 on NOI? Trying to figure out what is the 50% that the "brains" guy typically receives.

b) Do we need to form an LLC + create a joint checking?

c) Any other general tips for a newbie trying to create a 50/50 partnership? He is a friend of mine and trusts my judgement - neither of us would get upset if a deal went bad (we've already discussed possibilities of losing money, and how it will Not effect our personal relationship)

I live in Los Angeles but am looking to buy an out-of-state multifamily rental (purely for cash flow purposes), and currently I'm looking at Dallas/ Fort Worth, Kansas City, and Atlanta.

For anyone who has a rental property in Atlanta, I would love to learn more about what I might be getting myself into. Particularly:

a) What places are crime-ridden, and should avoid? I've been looking around downtown for the most part. I always see people posting the letter grade (C/B/A) of a community, but is there a website that you guys use to figure the letter out?

b) How is the job stability? Are turnovers and foreclosures high at the moment?

c) As an out-of-state investor, what might I be surprised to learn about Georgia? Any specific laws/taxes that I might be surprised by?

d) Do you have any property management company in place that you really love and could recommend me? Feel free to send me a message (Disclaimer: If you work for or are affiliated with any PM company in Georgia, please do not send me anything).

I would absolutely love it if someone who has bought a rental in Atlanta from out-of-state could chime in here. Thank you

@Marco Santarelli 

Any thoughts on MFRs in the Inland Empire?

Right now I feel like I'm willing to sacrifice a better cap rate for proximity, but I think as I see more MFRs in Texas... I will probably change my mind.

Looking to buy my first MFR this year, and since the rental numbers don't really work in LA, I'm very interested in looking deeper into the Inland Empire. I'd love to speak with a real estate agent that understands the market there, and which properties are great for rentals.

I would not be living in the property, and am only looking at things from a rental/cap rate perspective.

Thank you!