All Forum Posts by: Zander Kempf

A key principle is to invest for cash flow. As long as there is sufficient cash flow and you maintain reserve capital, leverage can be a great tool that allows for exponential growth.

@Chris Rosenberg, you can finance a mobile home but it would be with a commercial loan which is usually quite costly (high points and interest since it's likely a relatively low value loan).

I am wondering how it would be possible to share ownership between two partners on a SFR when purchasing with a conventional loan. Since it's not commercial, a conventional loan cannot be initially setup in the name of an LLC, and technically it would trigger the "due on sale" clause to transfer the title after closing. Is it possible to share ownership via an operating agreement for an LLC while the property title is still in the name on one of the individual members? I am looking to accomplish split ownership from both a legal and tax perspective.

Is this possible or will I have to use a commercial loan?

I have a couple of investors looking for long term residential rental investing and I would like to syndicate a handful of properties. I am struggling with a way to come up with the best structure for the deals so that multiple investors can be involved while one of them backs the mortgage. These are non-accredited, friends and family investors. What structures have worked well for you in the past? (LLC, LLP, preferred returns to mortgage backer, amount of equity for syndicator to keep etc.)

One important piece to add to this is that you cannot get a conventional mortgage on a manufactured home. Fannie Mae only allows manufactured homes to be financed as primary or secondary residences, NOT investments properties.

Is formal education (particularly RE development graduate certificates) better than hands on/ real world experience? I have done a couple rental properties, flips and wholesale deals and would like to move towards commercial development. Would it be better to spend my time on some formal education or simply do more flips to gain more practical experience / knowledge?

I have several rental properties now and having been sharing what I have been doing with my friends and colleagues. Several of them have expressed interest in investing with me but I am not sure the best way to structure a co-venture. Better yet, I would like to take money from a couple of them, manage the purchase and deal with owning the property (tax, insurance, PM etc.) without putting in any capital and just taking an equity share at closing. 

The only way I can think to structure this would be an LLC for each property (since each one will have different owners). However the costs of LLC registered agents, annual filing and tax filings would eat into the cash flow significantly. Any suggestions for how to best structure a co-venture deal?

I have purchased a couple of properties and am running low on cash. I have some friends and family that are willing to invest with me. What is the best way to borrow and invest their money while keeping myself protected and without violating and securities laws? 

I spoke with a lawyer who quoted me at $5,000 to create legal documents for this sort of transaction. Is there a cheaper way to do it?