My background is as a structural engineer (licensed in ~20 states), and over the years I’ve seen firsthand how engineering/design input can make or break a value-add project.I’m curious how others here have structured partnerships when one partner brings specialized skills (like engineering/architecture, general/specialty contractors) in addition to capital.Do you attempt to treat them as a straight equity partner, as a reduced cost service provider with upside or something more creative?

For additional context, both tenants are up-to-date on rent and at or near market rate. 

Hi @Noa Lukela, many of my clients (buy and hold) who are ready to buy additional rentals are seeing the same challenges you've alluded to. 

Electric can also be an issue in California, but it sounds like that you've checked on that...but sometimes just because a lot is infill with poles everywhere doesn't mean that the electric company wouldn't require a long amount of time to process electrical plans on their end and sometimes they end up having to replace a pole or add a transformer, etc due to additional load demand. 

Leasing commissions, construction management mark-ups, etc are on top of the PM fees, and should be outlined in the PM agreement what services are included, what markups happen, and any additional costs associated.

From what I understand, the annual gift tax excludes $18K per person (2025 limit), and anything above that either gets reported against her lifetime estate/gift exemption or requires some additional planning.I’m trying to figure out the most tax-efficient and practical strategy here.

We do a lot of refi's so I'd love to answer any additional questions you may have!

These comments add additional thoughts and strengthens my plan and process.I hope the best for you and that you will attain your goals and dreams.

A copy of his Accord with you added as additional insured sent directly from his carrier.Personally I'd make sure you have your own builders risk policy & I'd consider a GL policy too.I'd also be well versed on contractors license law (if there's any) in the state your operating in.

Consider partnerships where you can provide construction services and there could be additional income generators available.