All Forum Posts by: Alex Jones

@Luke Carl Thanks.

We own two vacation rentals in AZ. We paid cash and are looking to do cash-out refis. Nothing huge, a 50% LTV would be fine. All the lenders I've spoken to want us to change title to the LLC members individual names. I would really like not to be listed on these loans as I want to buy properties for myself outside the LLC and think this would hurt my loan-ability in the future.

Any advice?

@Ryan Swan It was already zoned for multifamily.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Tempe.

Purchase price: $360,000
Cash invested: $360,000

My LLC bought a single family home with a long rectangular lot parallel the street. We are in the process of two lot splits, separating the house from the land and splitting remaining land into two parcels. The plan is to sell the House after lot splits are approved to recoup our initial investment and develop the remaining parcels by building a four-plex on each.

What made you interested in investing in this type of deal?

The growing demand for multifamily housing in Phoenix.

How did you find this deal and how did you negotiate it?

Found it on Zillow and I used a real estate agent familiar with the market to negotiate on my behalf.

How did you finance this deal?

Partnerships.

Hello BP,

A buddy of mine presented me with an opportunity for my company to partner with his on multiple out of state deals. He has a partner, and I have two partners. Before we start down this road, I want to manage expectations as much as possible. Can anyone give advice on how we should structure this agreement? Should we set up a new LLC for the partnership? Should we create a joint venture agreement and keep our LLC's separate? What pitfalls can I avoid? What exit strategies can you recommend?

Also, since we’re contributing equal capital to each deal but him and his partner are the boots on the ground and are expected to do more of the work, he asked how we could make it fair. He suggested that we keep an even 50/50 split of each property but pay some sort of upfront fee to compensate them for the extra work. Any ideas on how we can set this up? 

Thanks for all advice! 

Alex