All Forum Posts by: Ian Clayton

Thank you for the quick replies. I tried a different browser, instant success.

Sorry to be a pest. Can't wait to read them.

Make today great.
Ian

Hey gang, has anyone else encountered "Sorry, an error occurred" when trying to order J Scott books? I've been trying since yesterday with every combination of name, address, email and various credit cards. No luck for me, just a red bar that says "Sorry, an error occurred.

Any pointers would be helpful.

Thanks.
Ian

Thank you again Jeff S.

I very well expect that doing business with a money partner who is out of state will be more complex than than doing them with my own cash or with a local partner.

When I'm saying that I want things to be as simple quick and easy as possible, I guess I mean that as no more complex or cumbersome than they need to be.

I have a top shelf REI focused accountant and great RE attorney also and full well intend to use them both generously in this situation.

It's really funny, I started out months ago thinking exactly what you just said about my partner buying the property and retaining 100% ownership of it and I wound up trying to think about all these other ways of doing it because he doesn't want anything to do with the deal process.

He's not always very accessible, so moving quickly might be challenging.

I have to figure out how to make frequent offers and counters on his behalf.

Dell - I guess I've been too hung up on my offers being clearly cash offers with no letters of commitment or anything in order to make them as strong as possible. Maybe I should try to submit the offers with LOC from private lender and see how they do.

Jeff - Thank you for your input. Based on what I am hearing from you, your points seem to suggest that I make offers in the name of my business with LOC and POF from private money and purchased properties are deeded in my business's name only, with the money guy holding primary lien. Then I manage the project and sale. Proceeds of the sale would satisfy his lien first and the remainder distributed to us based on the terms of our agreement.

This leaves two unresolved challenges for me.
1) I want to be fast and nimble on the ground with buying materials , paying contractors and misc expenses. How do I do that with his money in his account?
a) I could use my cash and submit for reimbursement checks frequently. But this would significantly complicate our bookkeeping.

2) I want to keep closings in and out of the deal as inexpensive, simple and quick as possible. All of these get messier when there are lien holders involved.

Thanks.

Ian

J Scott ... Yep, I let you a message, sorry to hear about the phone thing, that stinks. No pun intented, hahaha.

Thank you for your suggestions.
I"m trying to build a step by step process for how to handle each step of the process with an out of state partner, while providing as much protection for him as possible.

I'll pm you about talking.

Ian

Dell Schlabach Thank you very much for you input. Very helpful.

Can you clarity a few things?

How is your partner protected if the property is deeded in your name? Is it something in the agreement?

You've never had trouble having cash offers accepted with POF not being in your business name?

Thanks.

Thank you Steve.

Our trust for each other is total and complete.

Considering that he will be putting all the money in from out of state and I am going to be the face of the deals and handling prject management.....
From your perspective, should we be doing these types of transactions as two entities co-buying and co-selling or as one entity with one bank account?

Thanks.

Thank you Ibrahim S.

To clarify, my comment about keeping things simple and inexpensive for now was not so much about the cost of forming another LLC with his LLC and mine listed as managers. It was more about the increased complexity and addition attorney and accountant cost for the additional layer of business. you're right though even if it cost us $2000 for everything, it's not that big of a deal considering the amount of money we'll be working with.

My original intent was to for such an entity, with the operating agreement listing him as making the capital contribution. The rub for me came with the bank account and both of us having access to the funds. He is out of state. A double signature account does absolutely zero to protect one person against the other person forging signature, vacuuming the account and flying to a third world country. My Partner has total trust in me and is down for what ever, but I guess I'm operating on a matter of principle that I wanted him to be as protected as possible.

I'm not clear on you comment regarding not putting a name of a buyer on an offer unless we planned on purchasing the property in that name. what other name would one put on an offer? Can you offer an example scenario?

1) If both of our LLC's were on the offer, then we would both be buying, and both be deeded. What's the drawback of having two businesses on a deed? Is it unlike having two individuals on a deed?

2) If we buy under a joint entity, then we are both essentially deeded on the property anyway. Is this different in some way?

Ian

I'm going to start doing buy/rehab/sell deals with a money partner. We'll be 50/50 profits and losses. The purchase and rehab will be funded 100% from his money. I will be doing all of the finding and project management.

1) I'm trying to figure out the best way to make cash offers that require proof of funds and earnest money checks without having a joint bank account. I'll be making a lot of offers.

I don't think that we want to form a new joint entity yet. We want to keep it simple and inexpensive for now to do business together. He trusts me enough to just have a joint account, but I'm a bit uncomfortable that it doesn't offer him any protection.

Should I just put both our businesses on the offer and the proof of funds would just be from his business?

2) I also need to figure out what the best way is for me to handle all of the financial transactions on the ground of the rehab projects. e.g. buying supplies, paying contractors and misc expenses.

Thanks for your input.

Ian

Thank you Ann. Some great insight into how this can be shaped.