All Forum Posts by: Dionte Graves

 Great and accurate response!!  No equity splits here, these properties dont have huge margins where equity splits are attractive, which Im sure you're aware of being from ne ohio as well lol . So yes a fixed rate, borrowed from an ira, what title company do you use if you dont mind sharing?

 Thanks for your response... Using a private money lender with an actual operating agreement in place is the only uncharted territory thus far, hence my inquiry into how other bp members have gone about this in their businesses. We've been actively rehabbing homes in my area for the past  years and we have our costs under control better than the average company here. There inst much that can surprise me with homes in my area.

 Exactly what Ive decided to do! Its not expensive but could be very expensive without it...  Thanks for your reply!

Thanks and Great response! I think I'll end up filing an LLC, Here in Cleveland Ohio Most of the homes we are purchasing have less than 80k purchase and rehab costs from start to finish so only one investor per deal is typical here. Most likely will be a two member LLC.

I'll Let my CPA make the final call on whats best as far as the tax implications for my company, although I believe any net profits would just be considered a capital gain taxed at 35-40% or so unless I reinvest the profits into Real Estate...

Good Morning,

My company has a couple potential private lenders who are interested in lending to us for the purchase of a distressed residential property. My company will serve as the Gc over the project once complete, we will sell the property retail. We've been doing this for a few yrs but all for out of state investors with no shot at equity.  Although these people are my family or a close acquaintance so for our peace of mind and legal reasons of course I want to have an operating agreement of some sort in place... 

I've worked consistently with an uncle of mine who trusted me enough to do two deals and we just did business with a handshake, he got is original investment as well as the return we discussed... I know that I'd go to hell and back to repay my investors but in business its naive to just give a good word because someone knows you...

Anyhow any words of advice on drafting an operating agreement or an attorney reccomendation would be greatly appreciated! Also one lender is borrowing from his retirement if this adds a level of complication to this please advise.

Its tough to be open about the losses taken in business but my worst mistakes have birthed some great wisdom to say the least... 

And if anyone is in this business saying they've never lost or made a mistake that's when I'm running lol... Thanks for sharing! 

I have a full general contracting company, only thing we don't do is small handyman work but we literally do everything thing else... If you're interested send me a scope of work and I can schedule one of my estimators to bid on the work you have... 

Excuse the Random pics, Im not too bigger pockets savy on uploading a lot of pics at once...  feel free to ask any questions!

Long story short... I started out with a condo and a single family rehab before the crash in 2007-2008. Flipped the one house and had to move into my rental and at 20 yrs old I couldn't find any financing anywhere so My investor career was put on Pause as was the same for a lot of people around me. So in 08 I started working for a few REO national Vendors doing, Property preservation work, The grass cuts, clean outs, minor repairs etc.

Increased that work , lost work, had prices cut, you name it, it was a struggle to say the least, However the past two years I was able to partner with another contracting company and together weve grown, we have multiple crews at our disposal, an in house licensed electrician, plumber and hvac guy, concrete finishers, carpenters, general laborers an in house realtor etc. We have seen the absolute worst homes and completed completed excellent rehabs. We currently are providing majority of our services to a company who made a bulk reo purchase here in the suburbs of Cleveland and they are happy with their progress in our market thus far. We have transitioned out of REO work for the most part and work on our own rehabs along side full rehabs with the out of state investor.

In the near future we will be bringing on investors who will serve as private lenders on rehabs which will be sold conventionally in most cases.

I have tons of pictures that wont make this post but here's a few!

My advice would be to be very realistic about property values and the areas of Cleveland you invest in, have a good understanding of how to estimate repairs, and have a few exit strategies that you're prepared use if plan a dosent work out! Anyway I can help let me know!! 

@Carrie Giordano Yes I am still active in this business, we've transitioned to rehabbing for an investment group based in California along side, the estimate and repair business.