All Forum Posts by: Blake Harris

Does anybody have experience with leasing out a residential multi family home by the bedroom for extra Cashflow (i.e. leasing out all 8 bedrooms of a quadplex or leasing out 7 and living in one)? Pros and cons of this method?

In the event that I (under the name of an LLC) needed to get a co-signer on a commercial loan, would a bank typically require that the co-signer have ownership in that property as well or could banks allow them to simply just be the guarantor for the loan and allow my LLC to maintain complete title of the property?

Question for anyone with experience as a Real Estate CPA or attorney or partnership experience:

I am potentially looking into partnering in the future with another individual and forming an LLC to start investing in commercial retail deals. In order to make our investments scalable and to pull all of our money back out of deals, we would have a cost Segregation study done upon closing each deal and 1031 exchanging the depreciated value as the down payment for the next property. My question is, if I wanted to eventually break away and start investing by myself (given that all of the contingencies are written up in the LLC agreements), would I be able to take the depreciation amount from the cost Segregation study and use it to invest in the next property by myself even though the 1031 exchange would be coming from a property that is owned by the LLC? (Given that my partner would agree to it)

I would not be trying to leave or terminate the LLC, I would want to stay in the partnership for those few properties that we did together but ultimately start investing on my own as well.

Jacob, it is my understanding that since it would be my first commercial deal in that space, a bank would typically require a larger (60-65% LTV) down payment. Is it possible that a bank would offer 70-75% LTV on the property on a first deal if it is a bank that I have a pre-existing relationship with? Also, how difficult would it be to find a broker who would be willing to work with somebody in my situation?

Landon, I appreciate the response. I have watched Matt Onofrio's podcast multiple times through-and-through in order to really dissect and digest the strategy that he uses and how he got started. I have been looking through the BP forums at NNN Lease post for awhile in order to assist me in becoming more knowledgeable and consistently see brokers on some of these post discussing how banks still factor in the individual and their net worth. After coming across some other podcasts that Matt appeared on, he mentioned in one of them that his W2 income when he first started investing was around $300K a year. I understand that Matt was able to come up with a strategy that is a little unorthodox in terms of getting into the first deal with no money down and making it scalable, but he was still accredited at the time of that first investment. More or less, I really just want to know if it is possible to use the same overall strategy that he used, with the exception of no money down, to get into the NNN space without partnering considering I'll be making a military salary.

I am currently a student and will be commissioning into the Army next year. While my short-term goal is to start my real estate investing journey and portfolio by utilizing the benefits of the VA Loan, my longer-term goal is to get into the commercial niche of retail and industrial with NNN Leases. I understand that a lot of investors in the NNN Lease space have large amounts of liquid money assessible and are accredited investors. I have a creative strategy that I potentially plan to use down the road that will involve using the properties that I purchase with the VA Loan to free up around $500-600K in liquid money. My question is, since my W2 income will not be nearly enough, is there ANY possibility that a commercial NNN broker or bank would take a chance on an investor such as myself who has the liquid money available by is not an accredited investor? Would having a good pre-existing relationship with an unconventional bank (such as a portfolio lender) increase my chances? Or will being accredited and having liquid money give me the only possible opportunity? Thanks in advance, any response is valuable!