All Forum Posts by: Brian H.

I thought you were referencing some public option on here.

Can you point me in that direction so I can see how they have it setup @Michael Baum

We have experience purchasing properties through our LLC using lending, where we own 100% of the properties. However, we are now exploring opportunities to bring in passive investors to help accelerate our portfolio growth. Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.

Proposed Investment Structure:

• Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.
• Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.
• This structure allows us to maintain 70% ownership of the property.
• Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.

Proposed Compensation for Investors:

• 6% preferred return annually.
• After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).
• Profit Calculation:
  • Revenue – Operating Expenses
  • Excludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.

Looking for Feedback:

• Is this structure fair and attractive to investors while ensuring long-term alignment? Are we possibly cutting ourselves short here with a deal of this nature?
• Have others structured similar deals, and if so, what worked well (or didn’t)?
• Are there any potential flaws in the way we are setting this up?

Since this is our first time structuring an investment deal like this, we want to ensure it’s fair and appealing to both parties. Any insights or alternative structures would be greatly appreciated!

Thanks!

We have experience purchasing properties through our LLC using lending, where we own 100% of the properties. However, we are now exploring opportunities to bring in passive investors to help accelerate our portfolio growth. Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.

Proposed Investment Structure:

• Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.
• Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.
• This structure allows us to maintain 70% ownership of the property.
• Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.

Proposed Compensation for Investors:

• 6% preferred return annually.
• After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).
• Profit Calculation:
  • Revenue – Operating Expenses
  • Excludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.

Looking for Feedback:

• Is this structure fair and attractive to investors while ensuring long-term alignment? Are we possibly cutting ourselves short here with a deal of this nature?
• Have others structured similar deals, and if so, what worked well (or didn’t)?
• Are there any potential flaws in the way we are setting this up?

Since this is our first time structuring an investment deal like this, we want to ensure it’s fair and appealing to both parties. Any insights or alternative structures would be greatly appreciated!

Thanks!

I recently picked up a property in a tax foreclosure in Cuyahoga County in Ohio.  There are good tenants in the building that pay monthly and they were paying to a property management company that was still collecting rents and signing new leases while the property was in foreclosure and had no contact with the owner because he either went MIA or decided to completely neglect the property and let it go.  It seems like the property manager was basically collecting and pocketing rents since there was nowhere for him to send the funds too.  I know in tax foreclosure situations the new owner can become liable for the security deposits.  In this specific situation should the property management be forwarding me the current owners security deposit and/or paying me a pro-rated amount for the current month collected if I acquired the property in the 1st week of the month and rent was already paid for the full month?  If I am not entitled to the money by law is there any harm in asking him for the security deposit and pro-rated amount of rent for the month that was being charged or having my tenants nicely ask for their deposit and/or pro-rated rent back for the month they had already paid in advance?

Thanks for your time

The yelp speaks for itself, multiple people don't call you a scam unless you are slinging garbage at the very least

https://www.yelp.com/biz/nick-vertucci-real-estate-academy-santa-ana

The yelp speaks for itself, multiple people don't call you a scam unless you are slinging garbage at the very least

https://www.yelp.com/biz/nick-vertucci-real-estate-academy-santa-ana

The yelp speaks for itself, multiple people don't call you a scam unless you are slinging garbage at the very least

https://www.yelp.com/biz/nick-vertucci-real-estate-academy-santa-ana

The yelp speaks for itself, legit waste of time 

https://www.yelp.com/biz/nick-vertucci-real-estate-academy-santa-ana