All Forum Posts by: Shaun Peterson

there is a ton of chatter about Delano these days.  Its a very safe investment IMO. 

Where at in Delano? Are you planning to hold onto it?

@Shaun Peterson I haven't run into bank financing issues, nor have my clients. There is a big caveat to that though, which is that (1) I haven't entered into any LPs myself, and (2) the clients I work with are large real estate investors not using conventional bank financing.

However, I did make loans to LPs as a bank officer prior to practicing law. Based on that experience, I would go out on a limb to guess that most of the concern is a result of either the bank being uncomfortable with lending to an LP if they aren't well-versed in it and thus cannot confidently assess the risk, or (2) banks want personal guarantees from limited or general partners as the investment vehicle is generally single-purpose and would be hard to recover against. The first is a tricky one as it stems from inexperience and you're going to have to assuage those fears. The latter is a bit easier as the general partner could give a personal guarantee and then set up an agreement allowing the general partner to draw capital from the limited partners. Most limited partners won't be happy with that arrangement as they effectively lose their limited partner status from a risk perspective but maintain it from a governance perspective. However, such an arrangement is one of many possible ways to keep the bank happy and comfortable in the loan. There are many ways to resolve the second concern, but they will result from personal guarantees or the internal governance of the LP and should be handled by an attorney familiar with LP investment vehicles and potential securities laws issues. 

Zach

This post is intended to convey general information only and not to provide legal advice or opinions. The contents of this post should not be relied upon for legal or tax advice in any particular circumstance or fact situation. The contents of this post do not establish an attorney-client relationship.

I am thinking long term. I would love to start with a duplex. Live in one side with my wife and rent the other. But I just don’t have the kind of capital needed for a down payment on a duplex.

Not too sure what my options are. I would rather do that than buy a single family home.

I have my own business but only have one year under our belt. So we are basically working with my wife's income. We got pre approved based off her income for a conventional or FHA type loan, but to get a duplex at the price we are pre approved for it just wouldn't make sense. Unless we found some kind of miracle deal at $200K.

Any advice given our situation?