All Forum Posts by: Tim J.

$600 to repair a roof leak - you got off easy.  

Quote from @Theresa Harris:

Base things like heat on the relative sizes of the units and water on the number of people living there.

This is a recipe for problems.  To the OP - DO NOT do this.

Quote from @Dave Kush:

If we each put up half of the cash, we would split the profit. He would own 50% of a $500,000 house. The equity on that house would be $300,000, $200,000 of which is profit. If we flipped it, he would get his $50,000 back plus $100,000 of the profit.

The proportion of their share of the cost = their proportion of the arv

 OK, that makes more sense, but that is not what the original reply said.

Quote from @Dave Kush:///

... If somebody wants equity, I give them the corresponding ownership. If they put in 5% of the ARV, they get 5% ownership. It doesn't have to be that way--you can give whatever equity you want for the money you receive, sweetening the deal for you or the investor. Just be sure to stay cash flow positive and not to give up so much it's no longer worth it for you! 

 Wait, let me get this straight...  in your scenario, two people each come up with 50k to buy and flip a house that, in the end will be worth 500k. (with a sales price of 500k)  They get a loan for 200k.

Each partner puts in 50% of the cash.  Borrow the rest.  Sell for a 200k profit. 

In your scenario, the "partner" gets 50/500 = 10% of the upside.  But you get 90% of the deal?!

Wow.  I definitely do not want to be part of any relationship you are offering.  Sounds incredibly lopsided. 

Seems to me that the % ownership should be tied to actual cash in the deal with consideration for other work involved in making the deal happen. 

Maybe I am misunderstanding this, maybe you can elaborate?

One more vote to go get an attorney who knows what they are doing ASAP. 

Quote from @George Drexel:

Quote from @Alana Reynolds:

The low money down loan options are for primary residences so you would have to have the intention of living there. 

My first rental property was a quadplex that I purchased with the VA loan. The building was fully rented so I signed a document saying I had to move in within 60 days. It actually took 4 months to move in. But life took a different direction, and I left after only a couple month and rented the place back out. It is all about intention, don't go into it without planning on living there.

I guess what I meant to ask was has anyone had experience claiming the quadplex as their primary, all the while living at their real primary residence? I would essentially “rent” to my brother-in-law and still live in the house. 

Don't do it. What you are describing is fraud.  Plain and simple.  Also, for the record, this is a public forum and your name is there for all to see.  

I have rented to non residents whose status was, well, probably not legal.  They were good tenants.  

I don't think the status as undocumented is anything to focus on - there are better ways to filter/vet.  They may be good, they may be bad.  Same goes for the employer.

In order to grow your portfolio you should acquire more properties.  

There is no magic way to build a ton of equity in a short time.  Your proposed plan is a good option.  Due your homework, vert the deals and all the people you will work with.  People have grown wealthy starting out just how you have described.  

Consistency and focus will get you far.  

The more you network and widen your options the more/bigger possibilities will come.  Starting out how you describe is a good first step.  

I will caution though that as a new investor starting with OOS can add a bit of risk.  Get some mentorship so you can manage that risk,

As a new investor you are adding a bunch of risk by investing out of your area.  I think it is probably the best option for you but find a seasoned investor to help you thru the process.  

I would probably stay away from FL - there seems to be some shakiness in insurance policies and pricing - but I am not an expert on that.  

Keep looking at the threads on this site regarding cash-flowing areas and OOS investing.  There are a number of places that probably meet your needs.  Vet the deals and your team very well.  make sure you have a solid PM.