All Forum Posts by: Sunny D.

Quick question on partnering with a family member. My stepfather is really interested in partnering capital towards a buy and hold deal. He purely just wants a passive ROI once per year with no involvement in the daily business as he lives overseas. He's seen me recently successfully BRRRR a quadplex and get cash back out and I would like to put his cash and mine towards a small commercial multifamily.

We originally setup a partnership agreement last year before I had my cash out where we would buy a small multifamily using just his capital for the downpayment, closing costs and rehab, I would do all the work and we agreed to split the cashflow after the rehab 50/50. However, that purchase didn't come to fruition.

Fast forward to today and I'm now looking to provide around 50% of the upfront capital for a commercial deal, he will provide the remaining 50%. I'm now trying to decide what a fair cashflow split is, since i will still be doing all the work and he will be effectively a silent partner?

Thank you,

Matt

try not to mix family in money matters unless the goals and strategies are aligned. Once you establish a track record seek outside money. if your step father is willing to accept the downside if things dont work out then go for it

0 Votes

Originally posted by @Matthew Cook:

Hello Everyone, I'm looking for some advice. I'm a new Investor looking to get into the game. I've been researching and educating myself for a couple years while saving, paying down debt, and getting in a good position to be an Invester. I have two current routes for entry that I considering. My wife and I bought a house in 2015 in Denver-metro suburbs for $269k. Through forced appreciation and market appreciation we could sell it right now for between $375-399k. If we sold, I would get access to my VA loan again where we could buy a new home that better fits my family's needs in the $550k range. With the sale we could potentially make $100k which I don't have to put into the new purchase because of VA loan, and I could potentially buy, Reno, hold, and rent 2 properties in a market like Columbus, OH. Final assests could be worth $150k each? OR, we keep our CO home, rent it out for around $22oo/month, and buy our new home with refinance plus a separate down payment. Our long term goal is to buy and hold/rent so our first asset is already worth $400k. Not sure about what route to take and would love advice.

if you still expect appreciation over next 3 yrs, i would rent your home and sell it afrer 3 yrs so you are still in window where you dont need to pay federal taxes on capital gains. If you expect home to be 500k at end of 3 yrs nothing will beat that return compared to the meagre cashflow you will get midwest after taxes, maintainence, property mgmt, water bills etc. when you are local you save on PM costs.

0 Votes

I have acquired 7 homes in cleveland over last 18 months. i have 1 in parma, 1 in old brooklyn, 3 in 44135 and 2 in 44144

there was not much of a cashflow when i had turnover on a few of them but since then things have stablized and i got close to 20 % irr over last year. I focus on irr rather than cf per door. i get 100 per door free cf after capex reserve on 15 yr mortgages. paying off early so i can move to bigger things 5 yr from now is more important to me.

i now work with @boudiab , jad as he is ready to check the homr b4 making an offer. other agents try to get you to buy without taking the time to see it and estimate rehab costs.

2 Votes

Originally posted by @May Zhou:

We are considering to buy a townhouse to rent - diversifying assets is the primary reason. We are in Houston, TX.

Now my husband and I have difference when it comes to loan term: if 15 years loan, we are about to break even but much more asset accumulation with less interest. With 30 years term, we get 7% cash flow but hardly any asset accumulation in the first a few years.

Which is the better way to go?

i only take 15 yr loans and it has done me wonders.

0 Votes

Originally posted by @Jason Bott:

@Brian H. & @Sunny D. USLI or PersonalUmbrella.com are where most investors find umbrella options.

They can do multiple states and group LLC's and personally titled properties on the same policy.

I got in touch with a agency suggested by usli, they wont do umbrella unless i put either my primary or auto under their insurance agency. was odd so will call others

0 Votes

Originally posted by @Jason Bott:

@Brian H. & @Sunny D. USLI or PersonalUmbrella.com are where most investors find umbrella options.

They can do multiple states and group LLC's and personally titled properties on the same policy.

thank you, usli reached out to me so hopefully they offer a good quote. i was on fence as i already have 1mm liability per property so wasnt sure if i needed more umbrella

0 Votes

Originally posted by @Joseph M.:

Marco Bario it looks like Sunny is talking about the Brentwood ,CA in Northern California versus the one near us in L.A since they had their location as Pleasanton .
I always get thrown off by that too when people mention Brentwood .

yes brentwood, bay area

0 Votes

you need to make money when you buy.

so all good on apts but no need to rush unless you get a value add opportunity .

also make sure you have a buffer of 50 to 100k to deal with the surprises.

1 Vote

All Forum Posts by: Sunny D.

Sunny D. has started 22 posts and replied 237 times.

Post: $3000+ in Loan Origination Charges - Closing in 2 weeks - HELP

Post: $3000+ in Loan Origination Charges - Closing in 2 weeks - HELP

Post: Partnering with Family

Post: Advice: Sell in Colorado, buy in OH?

Post: Where in OH are you investing and Why?

Post: Rental Property Loan: 15 years term or 30 years term?

Post: Umbrella insurance - on the fence

Post: Umbrella insurance - on the fence

Post: New HVAC cost - Brentwood CA

Post: SO guys! my Triplex is paid off :)