Real Estate Investing: Partner wants a bigger share of returns |
- Partner wants a bigger share of returns
- I see everyone preach about 3.5% down fha loans, but what if you're not planning on expanding your real estate portfolio?
- Question about mortgage fraud
- Renter not allowing others to see home until the renter moves out, normal?
- Infinite cashflow method for investing in real estate
- Looking for Off-Market Deals
- Bad time to buy a Property and rent it out?
- How to properly vet a syndicator
- Really want to buy a rental property
- ADVICE NEEDED: Buy my deceased Grandma’s house; rent to father.
- Commercial Mortgage Loan - no W-2 Employment Income - MFH Investing
- Becoming a real estate agent
- How can one forgo escrow cost at closing?
- Needing help
- Structuring Costs?
- Sold home inherited and was in trust
- Received finders fee from wholesaler, how is this taxed?
- Should I start with a big investment or one that I could pay off in less then 5 years
- Best cities to start real state investing?
- Commercial loan needed to purchase single family home used by a business
- Sugar land, Texas?
- Real estate license in california
- House Hacking Question
- Reallocation of debt?
| Partner wants a bigger share of returns Posted: 08 Apr 2021 07:28 PM PDT I wouldn't mind some outside perspective here. A friend and I started an LLC and bought a number of buildings together. Ownership is 50/50 and investment has been 50/50. On one deal I covered her because she had some cash flow problems, she repaid me 3 months later. On the next deal she covered me for about 1/2 the amount I covered her on the last deal, she got her money back after 30 days. Today we're in for exactly 50/50. We employ project managers to oversee the rehab work and property managers to manage the buildings once they're ready to go. Since the beginning we've agreed that we would discuss things between us and she would communicate the major decisions to the project and property managers. We did this to have clear direction and not to confuse or openly disagree in front of our team. The reason she took the the lead rather than me was that she had experience in real estate and owned a few units in the area and I didn't; and frankly we butted heads a couple of times and I didn't want to constantly argue over trivial things. We're now at the stage where the buildings are almost rehabbed, the units are mostly rented out and by end of the year we will be looking to refinance and take cash out. We've made a decent profit on the building value and the rental income is looking like it will be healthy. Here's where it goes off the rails. The other day, out of the blue she messages me saying that she feels she deserves a bigger share of the returns (both rental and property value) because of the value she brings. She wants a 65/35 split, even though we're 50/50 invested. Her reasoning for this is: - her realtor from a previous deal found us the first building we purchased - she sourced 75% of the hard money for rehab, I found 25% - as first timers, we had trouble finding financing for our upcoming refinance and she got a recommendation from another realtor we used. It's looking good with this bank and we will likely go with them. - she is more actively engaged than I am and has been on site more than me, with the expenses coming out of our LLC account. My initial response was to remind her that she chose to be more hands-on even though we both pay the project managers and make decisions jointly. Add to that, we agreed on 50/50 ownership and investment and now she wants a bigger share of the profit because things are going well? I also reminded her that we found the other buildings on MLS and her major contribution was going to see them whilst I wasn't able to go. I told her NO on her proposal because this was never ever discussed or agreed. I don't feel it's fair to ask for me to invest equally, take equal risk and eat 50% of any possible losses, but once things are looking good give her 15% of the potential upside. But to salvage the relationship I did offer her something for the contributions she made to our joint success: - a one off 1% commission for finding our first building - a one off 1% commission for visiting the other buildings when I couldn't - a one off 1% finders fee for the hard money - 15% interest for the time she covered me and no interest for the time I covered her All of the above out of my share of the proceeds. I also said that we should change our mode of operation and I would take a more hands-on role so that she could step back and allow me to do more of the heavy lifting. Here's my question: What's your take on this situation? Was her ask reasonable? Am I being unfair or unreasonable with my response/counter offer? [link] [comments] |
| Posted: 08 Apr 2021 10:31 PM PDT My understanding is that these low down payment loans allow for the investor to be more leveraged by being able to quickly expand their portfolio by flipping into a new fha multifamily every year. In my case I just want to buy one nice duplex and live in half for many years. In that situation it seems that treating it as a traditional home purchase with a larger down payment would be better. The idea of putting such a small amount down and being so over leveraged frightens me yet this is the gospel it seems. Does it indeed make more sense to put more down even though someone else would be paying for so much p&I or am I overly concerned? If you couldn't tell from my anxiety, I am a first time buyer. [link] [comments] |
| Posted: 08 Apr 2021 12:56 PM PDT I am trying to buy a house as an investment property, this will be my first property. The lender I am currently speaking with has quoted me an owner occupied loan. He basically told me "when you close on it, you know, you just say your intention to move in there and you can always rent it out or not rent it out, its up to you." and "If you decide to rent it out, life happens man, that's not a problem at all, there not gonna do a spot check and verify you live there". I have made it very clear from the start that I intent to use this as a rental property and the loan officer has said that it wouldn't be a big deal if I did with an owner occupied loan. I have no intention to commit fraud and have no intent to deceive my lenders. Would I get in trouble for taking this loan and turning it into a rental? [link] [comments] |
| Renter not allowing others to see home until the renter moves out, normal? Posted: 08 Apr 2021 05:36 AM PDT Renter is moving out in a month. They've been a really good renter for 2.5 years and he recently gave me their notice. I then told him I would start showing the place in a couple weeks and it was no issue. I continually asked them which day would work best for their schedule and they eventually said Thursday (today) and set up 12 showings. Today I get a message saying they are uncomfortable having people in the home while their stuff is still in there and that they've never seen this practice before. I come from a family a rentals and this seems like common practice but I just looked through my contract and I actually don't have language about showing the apartment while they are still living there. How should I proceed? I hate the idea of cancelling and missing out on rent trying to show rent it last minute. [link] [comments] |
| Infinite cashflow method for investing in real estate Posted: 08 Apr 2021 01:38 PM PDT I have recently been introduced to the infinite banking method of investing in real estate. From what I understand its essentially taking out a whole life insurance policy and then using the Insurance policy as a vehicle fund real estate purchases. Does anyone have experience with this? Is it a legitimate strategy? And if it is really such a good strategy why isn't everyone doing it? [link] [comments] |
| Posted: 08 Apr 2021 03:23 PM PDT I am a fairly new investor wondering if anyone has an opinion on the best way to find off-market deals in this overheated market. More specifically, I am looking for value add small multi-family properties in the Boston area. Any advice or direction would be much appreciated. Thank you [link] [comments] |
| Bad time to buy a Property and rent it out? Posted: 09 Apr 2021 12:11 AM PDT Interest rates are low but property prices are through the roof... I'm not a pro but I always wanted to buy and rent out a property for extra cash flow. Should I wait for prices to come down a bit?!?! Area: USA - NH [link] [comments] |
| How to properly vet a syndicator Posted: 08 Apr 2021 07:02 PM PDT Hi everyone, those of you who invest through syndications, how do you properly vet the syndicator? What kind of due diligence do you do? [link] [comments] |
| Really want to buy a rental property Posted: 09 Apr 2021 12:00 AM PDT Really want to get a rental property (my dream is multiple) but not sure how to do it with the lowest investment and where to get it. We live in southern CA where prices are pretty crazy. We do have like $300k equity in our home. Questions that run through my head...how can we get a rental property with lowest down payment? Is it worth taking out from our equity to pay for down payment? Should we buy something around a university, or in a good school district, or to do Airbnb? Thank you in advance to anyone with experience that can give me some guidance. [link] [comments] |
| ADVICE NEEDED: Buy my deceased Grandma’s house; rent to father. Posted: 08 Apr 2021 07:26 PM PDT Hi everyone! I have a unique situation that I'd like un-biased perspective on. My grandma recently passed and my father & two sisters are selling the home. My father has been living in the home for four years & would like to stay, but he can't afford to buy the house. He also has nowhere to live as his house is inhabitable. He turns 69 this year and will likely need to move into a home in the next 5-10 years. My partner & I are able to purchase the home and cut a deal with my father. We're offering him to stay in the home for a five or six-year period while he covers minor repairs that may come up. Here are the numbers: Our costs breakdown: $138,000 purchase price. $930/month mortgage. Father costs: $43,000 upfront payment (his 1/3 of house proceeds) For first four years he pays $100/mo. Years five and six he pays $250/mo. He pays all utilities associated with the home. We can personally afford the $930/mo mortgage and rent at our current apartment pretty handily leaving us with conservative $1,500 additional cashflow each month after all fixed, variable, & miscellaneous personal expenses accounted for. This would be our first real estate purchase & it's very daunting even with receiving $43,000 cash. Our tentative plan would be to sell the property after my father moves out OR keep as a rental if in a down market. I'd like to make this deal but my partner is uncomfortable with the deal. Is this a good deal for us with current terms? If no, what terms would you amend or add to make it so? Is this deal unfair to my father? What would you change to make the deal fair to him? Thank you in advance for your feedback! EDIT: His house is un-inhabitable. [link] [comments] |
| Commercial Mortgage Loan - no W-2 Employment Income - MFH Investing Posted: 09 Apr 2021 01:43 AM PDT How is income typically verified to grant a 30-year commercial loan for a 1-4 MFH ? Is a W-2 income required to qualify ? Is loan granted to an LLC ? To Sole Proprietor ? To both ? Thanks. [link] [comments] |
| Posted: 09 Apr 2021 12:16 AM PDT This is something that I have considered for a while now... I am interested to get a real estate license however I am currently residing overseas and won't be able to return to the US in about a year or so. I've heard and seen so many advantages of being a real estate agent and am pretty excited about it. I hope to invest in a couple of real estate myself. My question is, should I start studying for it online? And if so, do you guys have any recommended websites? How long does it take to become a licensed real estate agent? Many thanks [link] [comments] |
| How can one forgo escrow cost at closing? Posted: 08 Apr 2021 07:21 PM PDT Like title says, at what point can you not escrow taxes and insurance? Is it as simple as asking the lender? In some cases, its like double the down payment! Also, is it possible to include closing cost in the loan or does it need to be paid up front? [link] [comments] |
| Posted: 08 Apr 2021 10:59 PM PDT So what should I do for starting out my passive income 1 buy a duplex live in half rent out other 2 put money into a real-estate stock that pays monthly dividends that pays it self off in 4 years? [link] [comments] |
| Posted: 08 Apr 2021 10:51 PM PDT I'm about to purchase my first investment property. We agreed on the price, but I wonder what costs and allowances I can ask the seller to make (in exchange for a higher price). I need to put 25% down, so I'm looking to minimize this out-of-pocket expense. [link] [comments] |
| Sold home inherited and was in trust Posted: 08 Apr 2021 06:59 PM PDT Does a person pay taxes on this? It's over 100k. If that matters r/taxes is closed I assume you guys will have some pointers or experience to share Thanks [link] [comments] |
| Received finders fee from wholesaler, how is this taxed? Posted: 08 Apr 2021 06:36 PM PDT So last year I found a deal and received a finders fee for it. The check was cut at closing by the title company and sent to me. Wholesaler says since they didn't pay me, they won't give me a 1099. How is this income claimed? Any insight would be greatly appreciated! [link] [comments] |
| Should I start with a big investment or one that I could pay off in less then 5 years Posted: 08 Apr 2021 02:30 PM PDT |
| Best cities to start real state investing? Posted: 08 Apr 2021 08:07 PM PDT My idea is start by buying a lot of land and building a prefabricated house for renting. With a budget of around 100k, is this doable? In which cities would be better? [link] [comments] |
| Commercial loan needed to purchase single family home used by a business Posted: 08 Apr 2021 02:07 PM PDT I found a single family home listed that's being leased by a small accounting firm until end of 2021. My realtor looked it up and the MLS notes state "commercial loan only" and explained that's why it's not sold yet. Is that a requirement even though it's a home temporarily leased to a business? Am I missing anything? [link] [comments] |
| Posted: 08 Apr 2021 03:52 PM PDT I've never been to Texas however now California residents and tech companies moving to Texas, so I was thinking of investing in a sfh in Sugarland TX. Anyone investing there have any advice? [link] [comments] |
| Real estate license in california Posted: 08 Apr 2021 07:06 PM PDT I'm looking to start to get my real estate license in the state of California. I want to look into online classes for it/self paced courses for the pre licensing portion. Is there any sites that have good notable reputation when it comes to this? Or any advice? [link] [comments] |
| Posted: 08 Apr 2021 11:12 AM PDT Was looking to receive an FHA loan to purchase an existing multi-family home in my area but none that are available are in good locations/minimal profitability. I'm assuming the market is just very competitive at the moment. If I decide to purchase my own single-family home and then in a few years the opportunity to buy a profitable multi-family home comes up, would I encounter any issues getting that 2nd mortgage? [link] [comments] |
| Posted: 08 Apr 2021 06:28 PM PDT I own our primary home and have a considerable amount of equity in it. My husband's has a decent amount of student loan debt impacting his DTI. He is not on the title or loan for the primary home but has signed the necessary documents to relinquish claims on that property if we end the marriage. The new mortgage balance would be commiserate with the purchase price of a smaller property so unless the market completely tanks we wouldn't be upside down. My thought is to do a cash out and move the student loans into our mortgage, it would cut the interest rates on them by 2/3 and the payment would still be affordable with our salaries. Once the loans are gone his score will increase enough we can add an additional income generating property. In the meantime we will be aggressively paying down the new increased principal. They are our only remaining debt. Seems like a no brainer, but I welcome criticism on any landmines I am not seeing. [link] [comments] |
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