All Forum Posts by: Austin Andrews

That all depends. What is your interest rate on the loan?

I sent you a PM

If you are doing all the work, and he is bringing the capital, work out on agreement. Get an attorney to draft documents, and do a partnership, possibly an LLC.

There are multiple ways to do this. You can use his capital and pay him an X% return on his money, you can do a 50/50 split, etc. Figure out which way works for both of you, and make it happen!

He's bringing the capital, what do you have to offer? 

If you find a good deal, the right buyer will come.

Start going to local investor meetups, join your local real estate facebook pages, find out who is rehabbing property in the area, and just research. Buyers are everywhere, you just have to put in a little time and effort to reach them.

First, get rid of the emotion. Compare the returns on your current properties to the returns on a 1031'd property. If you're talking about scaling up, it needs to be a business, justified by the properties. 

With it being a sellers market, sure you'll sell at a (hopefully) high price, but remember that you will then buy your new property at a higher price. Unless you find a great deal. 

Rates are extremely low. Unless your current properties are out of this world, 1031's are always a great option with the right end deal and proper financing.

Due Diligence Clause is completely up to your contract wording, but it is used to protect yourself or the buyer. 

In a nutshell, "buyer has 14 days to inspect all units and books and records, or has the ability to terminate the contract and all earnest money to be returned to buyer."

Do some research on multi-family brokers in your area, meet with everyone who owns an apartment buildings in your area, and start building relationships. If you have the capital and funding for a deal, the deals will come to you with the right network. 

Without any numbers being known, this is hard to answer. Sure, in a perfect world, it would make sense to sell a 4-family with some equity and 1031 into a 12-unit. 

Are these properties currently cash flowing? Are they appreciating? Do you know how much trapped equity you have?

There are a million different ways to scale up. You could pull the equity out and purchase more. You could cross-collateralize the buildings. You could sell and upgrade, etc.

I would get in touch with a local Multi-Family Broker, your accountant, and a 1031 Exchange Specialist and they should, hopefully, be able to point you in the right direction.

Good luck!

If you type in STL Real Estate on Facebook search there are several local groups that always respond quickly with a ton of recommendations. Good luck!