All Forum Posts by: Aaron Andersen

Hey Brendan - I have had luck!  Primarily through the facebook group called "WA Real Estate Investing" which has proven to be invaluable.  Lots of great folks in there with local knowledge and about every other post is wholesalers (or just other investors) posting deals.  There's a lot of people gunning for those deals when posted, but I've been able to form relationships with some of the wholesalers in the group so that I can see some of the deals before the ping the group or their list

I have a friend/college I've been working with for years in other lines of business but want to partner up with on RE deals. How best do I do that exactly? I've been doing some reading on RE partnerships, LLC's etc... but I've come up with some specific questions. My partner is the "deal finder" of the two of us, and would be the person to find deals + manage rehabs as needed, and I'd be the one to figure out the financing, manage accounting, and do all the nitty-gritty business/operations stuff. So, basically, she's "lines em up" and I "knock em down". We both have capital, so we plan to fund the deals 50/50 and split the responsibilities + profits 50/50 also. Eventually, once we're cooking, we plan to get some other investor who wants to make a return on their money to fund the down payments and we do everything else, so we can scale faster.

So my questions are: 

- What's the best business structure for this? Real Estate Limited Partnership, LLC, etc??

- The biggest question that keep coming up on my mind, we want to scale this to include a lot of properties with mortgages, but I'm aware of the 10 freddie/fannie cap we each have, and if we're partnering on properties and thus the mortgages, that means each property would count towards our 10... so, in a world where she could get 10 and I could get 10 mortgages (20 total), this would mean we could only get 10 together (thus 10 total), which doesn't seem like we'd be leveraging that side of things as well. I've heard people mention to get commercial loans to avoid this OR get traditional mortgages, then plan to bundle them up with a portfolio lender later, but I've also read that's not a super easy approach. 

Hey Bigger Pockets family!

Question: I want to partner up with one of my long time colleges to more aggressively build a rental and airbnb portfolio. So, what business structure or partnership structure makes the most sense to setup to do that?

Also, if you feel this has been asked/answered perfectly elsewhere, just feel free to put in the link the form post, happy to just read that!

Is making an LLC together and buying properties through the LLC the way to do this? OR do we just buy each property jointly?

With some of the research I've done, it sounds like if we went the LLC route OR buy things jointly then the mortgages would show up on both of our radars - and, my concern with that is that I know getting more than 10 mortgages is challenging per person, so I'd hate to to soak up that potential with 10 shared mortgages, when individually we could have gotten 10 each (20 total)

We both have experience with rentals and airbnb as we each of several of our own, but we’re looking to scale/expand and we have complimentary skillsets which would help make that possible, hence the teaming up - but just don’t know how to logistically partner up.  We both have some capital, so we're both planning to jointly fund the deals, and then split the responsibilities ongoing.

Thanks in advance for any guidance!

Oh, and thanks so much for your response again - I'm realizing I need to talk to more people about their views on the market too so I can better figure out where to spend my time!

@Justin Frank I really think you're right about that, and your commentary somewhat reinforces the hypothesis I had developed for myself - and actually, I'm looking for wholesales for deals (like anyone else), but I'm honestly more looking for wholesalers to ask them what the point you make "are you actually finding motivated sellers with wholesale worthy deals in this market?"  because I'd be fascinated to know that answer.  

I've been keeping close eye on the market for the last 6 months - and I have actually seen a handful of homes pop up between the $100k-175k range on the MLS, but they need a lot of work and it's always a feeding frenzy when I find out how many offers these things get - so I'm kind of trying to figure out where I should put my energy... finding a wholesaler and/or trying to find those deals myself via mailers and such OR join the feeding frenzy when they pop up and try my luck? I can pay cash, so that helps, but so is everyone else I'm coming to find : /

Justin, it looks like you're in Tacoma - do you have any luck with wholesalers or are you fishing out your own deals?  I spend a lot of time looking at Tacoma as well, and wondering if I should just put my energy there instead as there's a lot of inventory, but also feels like a feeding frenzy there as well?

Looking to connect with wholesalers in the PNW - I'm located in Olympia, but looking to invest, flip, and/or BRRR here and in the surrounding area (Tacoma, Olympia, Lacey, Shelton, Centralia, Puyallup, etc). So if you're a Washington State wholesaler PM me, I'd love to connect!!!