All Forum Posts by: Brian Bagdasarian

@Jonathan Lane what part isn't clear?

It sounds like its a "six or 1/2 dozen" situation. You're 100% within your rights to give her the 30 day notice once you closed on the property. 

@Jonathan Lane - here's the absolute best advice I can give you, a new investor. There will always be people willing to do a deal with you when they know that they have no other options. I've seen many a person waste weeks, if not months, trying to do an undoable deal. Your time is best spent finding ones that actually have legs. Go with the 100:30:10:1 model - 100 deals reviewed, 30 deals underwritten, 10 deals get offers, and maybe 1 closes.

It sounds like she's simply underwater. There used to be some loans that let you go to 115% of the property value, for these types of situations, but don't know of any at this time. She more than likely will just need to take a loss, or let the bank take it back. She won't walk away with money, and by the time she sells it and pays closing costs, she'll be tapped out. Walk away from this deal - its not worth your time.

While i am not a CPA or RE attorney, I do know that you should be able to utilize a quitclaim deed to transfer interest. The specifics around gifting can also be worked out, and a good CPA should be able to guide you on the taxes, and a RE attorney on the legal process.. I don't believe that you need to do an actual sale of the property between you guys. 

Quitclaim yourself onto the property, and wait 12 months (although you may only need 6). Then just do a refinance of the existing note, taking them off of it and putting you onto it.

@Dee Brock - because I've written dozens of OA's in my career, we started with a drafted OA, that was then reviewed by our attorney. Our structure is an operating company, and then individual properties or projects are held in their own LLC's. This makes two things happen - We're able to separate the assets from the operations, and if we ever needed to sell quickly, we can sell the LLC that holds a property, and its a faster disposition than having to sell the underlying asset.

Roles: Even if you're partners (50/50 - anything else that isn't split evenly isn't a true partnership), there needs to be a boss. In my situation our roles split like this:

• - Me: Financial modeling, biz opps, deal sourcing, financial structures, vendor negotiations, marketing
• - Partner: investor relations, daily operations, tenant/vendor management

This doesn't mean that we both don't get a say, its just that this allows us to divide and conquer on efforts.

As far as exits are concerned - If one of us wanted to leave, then the other has the right to buy out (which could take time of course). If we couldn't come to terms, then the LLC allows for an exit, with the exiting partner having a note due, with workout terms defined.This could be refinancing or selling interests in properties. The ability to demand immediate liquidity is not permitted according to the OA

 Cinderblock foundations break down much more rapidly than a poured foundation. Water can get into the mortar, and if it forms a crack, then you have a major issue on your hands. In the northeast, where the ground freezes, this can be a relatively common occurance.

Hammer this out at the beginning. My current partner and I bring some very different skillsets to the table. When we initially formed our operating LLC, we spent the time to draw up an operating agreement that clearly outlined roles and responsibilities. This can always change down the line (through a resolution), but there's a reason that the saying "great contracts make great friends" exists. One other suggestion - have a 3rd party that you both trust that can be granted 1%-2% of the company, that can act as your tie-breaking vote, if you ever arrive at a stalemate on a decision.

If you're just getting started, check out AirTable (airtable.com). It has a mobile app, and allows you to create essentially spreadsheets on steroids, with massive customization.