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All Forum Posts by: Yusuf Wilson

Yusuf Wilson has started 5 posts and replied 20 times.

Post: Help with a deal structure . . .

Yusuf WilsonPosted
  • Investor
  • New York, NY
  • Posts 20
  • Votes 4

@Richard Fields: Thanks Richard! Yes, will definitely conduct more extensive due diligence. The anticipated costs for the entire project is approximately 75K (property is 25K, the rehab 45K, and we've added on another 5K for the realtors commission for resell upon completion). 

Are there any other potential expenses I should include here? Thanks for your insight Richard! 

Post: Help with a deal structure . . .

Yusuf WilsonPosted
  • Investor
  • New York, NY
  • Posts 20
  • Votes 4

Hi,

I have an opportunity to JV a deal in Philadelphia and wanted to see if you could provide any insight.

It's a 6 BR/2BA 1,878 sq ft 3-story row house in Philly. I've been presented with an opportunity to JV this deal with the following structure:

  • I fund 100% of the deal for 50% of the profit
  • They will facilitate the managing of the project (rehab, selling once completed, etc.)

One of my concerns is that they have no skin in the deal (i.e., if the deal goes south, I'm on the hook for the money owed). Also, what if there is an unanticipated cost which may require additional funds, thereby creating another challenge.

Is this a normal deal structure for someone who brings the deal to the table? Can anyone suggest any mechanisms that can be incorporated to reduce my overall exposure or protect myself in the event that the deal goes south? 

Any insights that can be provided would be greatly appreciated! Thanks in advance!

Yusuf Wilson

Post: Partnershp

Yusuf WilsonPosted
  • Investor
  • New York, NY
  • Posts 20
  • Votes 4

Thanks all for your helpful insights! Just coming back to the thread and seeing your posts. You were right Adam, 8 people was certainly a "logistical nightmare". 

Our coming together was just a shared interest in developing as investors. Each of us had various experiences and relationships with real estate but there was no specific value that anyone brought to the table in particular. 

Now we're just approaching each deal on a deal by deal basis and will do a D/B/A for any deals we move forward with. Thanks again for sharing your insights!

Post: Partnershp

Yusuf WilsonPosted
  • Investor
  • New York, NY
  • Posts 20
  • Votes 4

Thanks @Gerrit Stukkie! Appreciate the thoughtful and helpful response.

The goal of the group are to create a business that will help us build wealth. Our planned strategy is to create a business that will allow us to generate passive income. We've discussed keeping every 3rd house we buy in order to build up a cash reserve.

Thanks @Beth Cooper! That was excellent insight. I'll be reaching out to some CPA's tomorrow. Thank you also for the great article!

Appreciate you both!

Post: Partnershp

Yusuf WilsonPosted
  • Investor
  • New York, NY
  • Posts 20
  • Votes 4

Hello all,

I'm currently in the process of creating a legal structure with 7 other additional partners. OUr plan is to create an LLC for the purpose of flipping/rehabbing and buying properties together. Has anyone entered into a partnership with multiple partners? If so, can you offer any insight as to the dynamics we should be examining or including in our process?

There are several other questions I was hoping to get some insight on:

1) What is the legal structure we should form? I've spoken with an attorney and he suggested that we would need an LLP as opposed to an LLC.

2) What would be a good starting strategy to start out with? We discussed doing a couple flips just to build up capital and then do buy and hold for cash flow.

3) Being that we are not an odd-numbered group, how should the decision making process be designated (i.e., appoint one decision maker, create a system for decisions to be made, etc.)?

Any insight would be greatly appreciated! Thanks in advance!

Yusuf Wilson

Registered and excited for the talk. Once again, thanks @Darren Sager for facilitating the event and @David Krulac for taking the opportunity to share your insight with us. Looking forward to seeing and meeting everyone! 

Yusuf Wilson 

Post: Seeking Wholesaling Guidance

Yusuf WilsonPosted
  • Investor
  • New York, NY
  • Posts 20
  • Votes 4

Thanks Brian! Does it matter which state I form the LLC in if I plan on doing deals outside of New York as well?

Post: Seeking Wholesaling Guidance

Yusuf WilsonPosted
  • Investor
  • New York, NY
  • Posts 20
  • Votes 4

Thanks Mary B!

Post: Seeking Wholesaling Guidance

Yusuf WilsonPosted
  • Investor
  • New York, NY
  • Posts 20
  • Votes 4

Hello! Starting a Wholesaling Business with a partner and have a few questions. Should we have an LLC in order to facilitate the initial transaction of getting the property under contract? Is there a significant benefit to building and having a website associated with the business, as opposed to not having one? Are there any service providers that we need to have in place in advance of a transaction to assist with the wholesale transaction (i.e., Attorney, Accountant, etc)? Any insight to these questions as well as any information that may be helpful for us as we're starting out would be greatly appreciated. Thanks in advance!

I'll be attending. Thanks for organizing this event.