All Forum Posts by: Thomas Martin

Working through Michael Blanks software and videos now!

@Jason Baik

Good stuff! Thanks for investing in others.

Tom

In the process of trying to build a similar structure/partnership.

I would consider forming your entity(LLC, etc.) if you have not already done so, then spelling out the responsibilities and ownership percentiles of the deal in an operating agreement for this specific project.

I think the more you can get completed prior to bringing it to the attorney, the better for obvious rea$on$.   We are considering having equity positions laid out as the first position for repayment, then the sweat equity as the waterfall position for any profits that exceed payback of principal and expected or acceptable rate of return(TBD).  

In other words, the first position will be repaid principal + 6-12% ROI, then all would share in any waterfall to varying degrees that will depend on responsibility and sweat equity they may have in the project.

That is our approach anyway....

This is so great that you networking and reaching out.  I am going to forward to my business partner who is local to see if she can attend.

Can I ask if you know any RE attorneys in the area you would recommend?  We are looking to develop a Multifamily deal and want a contact with expertise in that area. 

Hope to get down there to one of your meetings soon and keep it up!

Tom M.

Dustin,

This is an exciting time for you and wish you the best of luck moving forward!

Such great responses here, but I am in a similar boat with my relinquished property on a 1031 exchange set to close 7/15. I have to say that I am vibing on Matthew's comments at the moment.  We have 7 SFHs that we self manage and as well as things are going, I don't need more issues to deal with at this point. 

The issues I would also be asking about in your shoes would be:

1. Where is the sweet spot in your market?  Depending on your exit strategy for the property(s), you may have more or fewer buyers competing when you go to sell. 

2. Are you able to force appreciation on either?   If you could slowly increase value on the $150K homes (probably more likely than the 300K home) than this would act more like a nice multi-family.

You are probably young and energetic enough to tackle whatever comes your way, so go with your gut and have fun!

Cheers!

Tom Martin

Housecall Properties, LLC

Thanks for responding Shaun. 

SFH 3B, 1.5BA appraised for $325K.

I think I've already made one mistake, but I want to keep from making another.

I have a SFH that has been rented over last 12yrs. REfinanced in 2013 at 5.375% and have some equity that I want to access.

Just had a tenant move out and shouldn't have any trouble getting it rented out with about $300-350/month cash flow. I moved, but think forward with a refinance when everyone else did about 3weeks ago and the rate and terms were changed to include points. In order to get out 60K, they were asking me to pay 2.2pts. I could get out about 24K at 0pts. They are only moving up to 60% LTV.

I was planning to use the money to add an additional 400sq feet of kitchen and master bedroom add a shower to the master bath. It should increase the rent by about $200/month and increase the resale by about 80K. 

I paid for the appraisal, but can back out of the refi now and only lose the $550 appraisal.  I think I should just pay for the rehab out of pocket now (60K) and then refinace and get a bit more out at that point(60-100K) to invest into a new property. 

Thoughts?

thanks, Tom

I have paid the appraisal, but