All Forum Posts by: Ryan Evans

That's a pretty rough situation, but you should come to terms with the fact you'll probably need to evict her. It can be a nightmare if you let your emotions get involved, but a lot of folks on bp evict tenants regularly and it's a pretty straightforward process at the end of the day. Just find an attorney who's been doing it a while and let them handle the whole thing. Sure, it will still take time, money, and you'll have to deal with her drama for a month or two, but let the pros do what they do. 

Doing evictions is just part of the price you pay as a real estate investor. 

Replacing all the big ticket items up front will definitely make your life easier. Those numbers sound pretty reasonable in that case. I've heard several people around the forums say that they save up to X amount of dollars per property in CapEx and then take home the excess cash flow once they hit that point.

If you haven't bought in that part of town before, utilities can vary wildly so be sure to check how much the property has costs for utilities over the past year or so. I've been calling the utilities once I get far enough along analyzing deals and certain areas have such high water/sewer bills for multifamily that it kills the whole deal. 

As the wise Warren Buffet says - Rule No. 1: Don't lose money. Rule No. 2: Don't forget rule no. 1! 

I'd vote on ditching the negatively geared property. You'll probably feel safer with a multifamily that spreads out your risk of even further vacancy loss. And with a multifamily, your value will be tied to the returns and not so much the emotions/economics of the homebuyer market. 

It is a bit frustrating. I'm just trying to figure out how the SEC defines "soliciting" for investment partners, and can't find any real answers. I'd love to more actively promote what I'm trying to do in real estate, but don't want to go down any road that could get me in trouble later on!

I've been getting some mentorship about almost exactly this same idea from a syndicator who has done dozens of $30+ mm deals in Seattle and have gotten some feedback that might steer you a little closer to some answers. For starters, it's a pretty ambiguous area in a lot of ways, even according to the pros. And of course, to avoid the onslaught of people telling me I'm wrong, this is just my learnings as someone who's not actually done it. 

A lot of the regulations are around how you meet your investors/partners. You're generally not allowed to advertise in almost any form. And depending on how you met the person and what sort of relationship you have, you could go either way. For example, a lot of folks who stand up asking for partners at public meetups are actually violating SEC rules. 

The regulations are there to stop the general public from being taken advantage of. That's why you're allowed to advertise under certain conditions as long as you only bring on accredited and/or sophisticated investors. It can be up to you to do that due diligence as well. 

All that said, you should be in the clear since you're friends with the guy already and you're active partners. But you'll still want an attorney to review your businesses operating agreement so you might as well find an attorney who can answer your questions and draft an agreement as well. From what I've heard, a simple LLC is the best way to go. But I'm not attorney!

Ah gotcha. Yeah, they have pretty specific requirements, but it is pretty cool to see some new options out there! 

Hey Jon, I'm working with a buyer client right now who is using a new service called Loftium. They give you down payment funds in exchange for Airbnb-ing out one or more rooms for 1-3 years. It's a short-term solution to get a property with less down and might be a good option for you just for the sake of getting another deal locked in. They're approved with Fannie Mae, so it's legit. 

I've done a ton of research and met with one of the guys there so let me know if you want to chat more about it. 

If it's an occupied fourplex and the numbers work, you can find a commercial style loan that will go off the numbers and not your income. You'll still probably need to guarantee it, but might be an option for you. That doesn't get you the down payment, but that could probably be handled through taking on a partner or two. I'm working on a partnership for my next deal. 

Give podcast 175 a listen if you want to hear a good story about using partnerships to buy multifamily. 

I've been down to the auction in Tacoma a few times. It's pretty chaotic for the novice, but everyone is super friendly and happy to help new players learn the ropes. 

With the market being the way it is, there are usually a handful of reps from the various hard money lenders standing there with a big folder of checks ready to buy almost anything in sight. The margins are stripped off a lot of those deals since the local flippers are often very willing to pay a premium just to get a deal locked down, so keep that in mind. 

You could look at doing do a lease option or seller financing. You could charge a premium rent for a few years of good cash flow then and fully get cashed out later. 

I saw your other post on the location. Since it's on toward the airport, it could make a decent Airbnb if you're inclined to put the systems in place for that. There aren't a lot of great options over that direction. 

This wouldn't fit my criteria at the 85k mark, but if you flip a duplex I'd be keen to take it off your hands. I'm looking for more low maintenance deals out that way.