All Forum Posts by: Bryan Petrinec

Does anyone have names of reputable builders for a duplex in the Leander area?  I would like to get some quotes.

Thanks.

Ron, your assumptions are correct. My partner has cash that he is infusing into the deal and the goal is to use that cash as down payments to acquire multiple properties and use a conventional mortgage for the balance. Since his balance sheet is much stronger and there are some needed tax advantages for him to take on the mortgages as well, we put the POA in place to allow me to leverage his credit and get the mortgages in his name. The JV structure is in place to account for the initial infusion of cash, the goals of our agreement, and how profits are split. I am putting in the "sweat equity" into this venture as my partner has other interests and is at this from a buy & hold perspective and wants to put the same level of effort into this as any other part of his portfolio, which is minimal.

Do you know any attorneys in the Austin area that focus on these types of structures that you can recommend?  We are going though a steep learning curve with having our first property under contract, and the goal of this discussion was to get input on structures that would make the next purchases go smoother and with less involvement from my partner.  

I am running into some issues in getting a loan for an investment property with a Special Power of Attorney document that allows me to operate on my partner's behalf to get and secure property.  My partner is a family member and we have a written agreement in place on how we both can benefit from this, but my partner wants nothing to do with the real estate transaction process, he is just bringing money to the table and will carry the loan.  This is our first run at this and I have obviously made a mistake in understanding what will be recognized and an approved method of doing this kind of business.    So in short (ish), since I have the time and desire to pursue this, and he has the money, we are targeting 3-5 purchases in the next 12-18 months.  I have identified our first deal and an offer was accepted.  

In going through the loan process, the mortgage company has pretty much told me that the special POA means nothing to them, and my silent partner is now in the mix with all of the loan details, which is exactly what he didn't want to do. We are in Texas and want to know what is the best structure that will allow us to accomplish our goals. My partner is getting frustrated, and so am I. I understand there might be some hesitation due to the fall out of 07 with straw investors, but my partner is willing to do what is necessary to prove he is real and has qualifying assets.... once.

So what is the mechanism we need to have in place to let me run this seamlessly and leverage his assets?

Thanks in advance.

Newbie investor 

So true.  I am learning very quickly that my goals and the numbers that make a deal work for me are not universal.  When I originally posted, I was watching properties go quickly that no matter how I looked at it, I couldn't understand why anyone would buy near that price point. But now I understand that for some, it will meet their goals and not mine.

Luckily I put an offer on two properties, both duplexes, and one was accepted this weekend.  So far, I like the numbers and excited about the property.  So I am almost officially a honest to God real estate investor.... almost.

Now back on the hunt for #2.

I am in the process of making offers on properties and hoping one will be accepted here soon.  BP has been a great resource and have been reading as much on rental property as possible.  I am looking for some advice and recommendations:

First for the recommendation: I am looking for a credible real estate attorney.  I have been looking at lease language that I would like to include but want to make sure it is worded correctly and falls under the guidelines for landlord-tenant regulations.  My goal is to grow a rental portfolio over time and although I dont anticipate any issues but would like to have a someone in my network I can rely on for legal matters.  

Second, the advice:  I am "partnering" with my father in this endeavor.  He is putting up the money for the properties and is really only interested in the long term equity growth.  I will be managing the properties and my father does not want to be involved at all.  We have an agreement (yes, on paper) where I will be paid to manage the properties.  According to what I have found on the Texas Comptroller's site, it appears that property management needs to be done by someone with a Real Estate licence.  Yet if I self manage, I do not need one.  Since this is family and he is appointing me to do this, can I manage the property and sign leases for my father?  There needs to be a work around.  Lastly, I have a handyman business, so I was planning on doing all the management through that entity so there is a visible money trail.  Can I do this without any issues?

Thanks in advance for the input.

I am looking to jump-start my duplex portfolio in the N. Austin area. MLS deals are not great or good ones go too fast for me to react. Can buy cash for the right deal and willing to entertain a BRRRR. Prefer turnkey to start the process and attack a BRRRR or 4plex once I have my feet underneath me.

Looking for 2-3 by the end of this year if the deals are out there.  Austin is a tight market, but the numbers still need to work.  Hoping the BP network can help out.  

Thanks for all the feedback. I agree with most of what you all are saying and patience will pay off. I am still amazed at all the deals that are happening off of MLS that make no sense to me. I am ready to execute and will keep looking.

Thanks Jordan.  Austin is a tight market right now and since I want to self manage, I want to stay close.  Once I have more experience, I would consider expanding my circle.  What kind of occupancy rates do you get with airbnb?  

Looking for first property in the N. Austin area for a buy & hold rental.  Been doing research and reading/pod casting BP and I am not finding deals that "work".  I am watching properties come up and sell and from what I can see from my evaluation is that they are not even break-even.  What am I missing?  I am all for appreciation and realize that is the current market we are in, but I want something that is cash flow positive.  Is everyone paying cash.  Are there opportunities to use bank mortgages?  

I want to use my current cash to get into 2-3 properties vs. pay cash for a single unit.  I would appreciate any guidance to get in.  I am ready to get in for the right deal.  Am I being too picky as a new investor?