All Forum Posts by: Ben Walker

I bought a single-family fixer-upper in November with the intention of it being my primary residence once the work is completed. After buying it, my buddy who flips houses, suggested we partner on it and turn it into a short-term /mid-term rental. 

He proposed that he would do the work and pay for the repairs and we split the deal. 

Is it possible for me to flip this into an LLC and split the house with him 50/50? Would it make sense to do this before the end of the year?

How would this impact the refinance opportunity if I own the mortgage? What about taxes for him with him paying for the cost of the updates? 

Long story short - we want to partner on it and want to understand how it would work for both of us.

I would agree with @Daniel Anshus on the house hacking over the wholesale route. Focus on the long-term strategy. When we look at lending, regardless of the applicant being a student or professional, they are evaluated using the 4 C's - Capacity, Capital, Collateral, and Credit. A borrower needs to check all the boxes. Depending on your work history, you may qualify on your own, but the likelihood of needed a co-borrower is high. As a first time buyer, there are also different programs we could look into, as well. My suggestion: lets start with a conversation. From their we can determine what you personally may qualify for or what would be needed in terms of a co-borrower. It would be much easier to have a conversation with a family member if you've clearly show that you've done the due diligence. 

I recently joined the group so it would be my first time, personally. They have done two funds thus far - mostly raising money from their personal network. About 30 investors in each round. I have been an investor in both funds. As an avid Bigger Pockets listener, I felt I understood the PPM and the business plan /strategy enough to invest in the projects.

That being said, for many investors, it was the first time investing in a private real estate deal. What I am trying to put together isn't necessarily marketing for a specific opportunity, but rather something that can clearly illustrate how an investment in our fund and the PPM works/makes them/us money - is a win/win for everyone.

Our investment group owns 10 multi-family properties and about 800 units. We have raised capital for 2 deals thus far from a trusted network of mostly baby-boomers and wealthy family friends. 

I am trying to put together marketing material that helps people easily understand the opportunity and how syndication works. Does anyone have examples or suggestions they would be willing to share?