All Forum Posts by: Calvin Lipscomb

I wanted to begin a discussion on prenuptial agreements when bringing assets into a new marriage. I know this is a controversial topic, however I thought that the BiggerPockets community was the best place to begin a conversation on this important issue.

I have always had the mindset that marriage should not be about money, it should be about your relationship with your partner. Therefore, if you have earned assets and have a portfolio of properties and investments prior to marriage, wouldn't the marriage be better off if these assets were protected by a prenuptial agreement? Then everything earned after marriage (outside of these assets) could be communal property.

I've personally seen too many marriages end when one individual brought significantly more into the marriage and it caused for a messy divorce. When this happens, the divorce lawyers are the only ones who wins!

Please share your thoughts!

Unless you have a major net worth ($10M+, not a few hundred thousand) at the time of marriage, you are better off without a pre-nup. Most people pretend that the fate of the world rests on their shoulders... lol.

Newsflash: If you're middle class, you might as well pretend you have NO money.

In a divorce, in most jurisdictions, your partner will get a portion of the marriage assets (pre-nup or otherwise). If you have a kid, best of luck. Child support is going to be a killer.

If folks spent half as much time on their marriage as they did worrying about a pre-nup, the divorce rate in this country would dramatically go down.

If your partner takes more than what was agreed upon then there was a prenup. Next, many "middle class" individuals do fall into poverty as a result of a divorce.

The point I was making (and failed to do) was that people focus on prenups more than their marriage. These are the same investors who also spend thousands of dollars on "asset protection" when buying their first few $50-80k houses.

Yes, divorce is a leading reason for poverty but unless you're super rich, you're going to get eaten up alive in lawyer fees regardless of prenup or not (unless, someone luckily has an amicable divorce). Can't enforce the prenup easily if one can't afford lawyer fees.

Valid points as well. Many fail to recognize that a long term relationship takes work to make it last just like a business and need I add just like real estate investing.

2 Votes

Originally posted by @Mary lou L.:

The home two doors down from my rental had a fire in the laundry room. It burnt that side of the home through the roof.

This home is very similar to mine, built at the same time, same finishes, exterior. The appraised value of mine ( just did a refinance within the last month) was 68k. So I figure this home at least to be that.

My contractor says he can get the home back into shape for 25-30. I have at least that much to get started.

The owner just got the deed. The home has been paid off.

I was thinking of starting the offer at 2500. It needs a full cleanout and gut even before we get started on the rest.

I am also going to enlist a local realtor to handle the transaction. The home is in Texas.

If this goes through I will surely post pics and progress of the rehab.

Please let me know that I am not crazy, and if I am call me out on it!!

It is 2 years later. How did it go?

0 Votes

Originally posted by @Omar Khan:

Originally posted by @Chaz Mathias:

Hi All,

Please share your thoughts!

Newsflash: If you're middle class, you might as well pretend you have NO money.

In a divorce, in most jurisdictions, your partner will get a portion of the marriage assets (pre-nup or otherwise). If you have a kid, best of luck. Child support is going to be a killer.

If folks spent half as much time on their marriage as they did worrying about a pre-nup, the divorce rate in this country would dramatically go down.

If your partner takes more than what was agreed upon then there was a prenup. Next, many "middle class" individuals do fall into poverty as a result of a divorce.

1 Vote

Originally posted by @Chaz Mathias:

Hi All,

Please share your thoughts!

Prenups will cause you to discuss and think about things that are often not discussed in a relationship.

2 Votes

Originally posted by @Ben Leybovich:

Originally posted by @Nik S.:

@Ben Leybovich @Sam Grooms Congratulations!! By you being able to have your offer accepted prior to the call for offers is everything!! How were you able to do so? Recently, when I tried to do that the broker suggested I give a non-refundable deposit of $10-20k to get it under contract prior to any other offers.

In hindsight, I definitely should have done it but lesson learned.

Hick - this was $100,000 EMD with NO FINANCE CONTINGENCY.

$50,000 good faith to lender to begin the app.

$15,000 to the securities attorney.

$7,000 to RE Attorney

If my math is right, I think this is about $172,000 hot on Day 1.

Freaking crazy, but such are the big boys club rules.

Is that about right, @Sam Grooms?

If you are afraid of deep and you have to stay in the shallow waters. Congrats on your move. @Calvin Lipscomb Jr

1 Vote

My group is in process in submitting an application to Midwest as I write. This is for a Real Estate Line of credit. I will let you know how it actually went.

0 Votes

Originally posted by @Demetrius Davis:

@Russ Fry you make a great point! The population decline is a very real factor. I am very concerned about Illinois's mixture of high tax and fiscal problems. My day job is in a Chicago charter school, the entire district is being impacted by declining enrollment due to families leaving the city or the state altogether. A part of it is tax, the other piece is public safety, too few high quality educational options, and high rent. Even buy and hold investors in Chicago need to be aware of this issue. When buying, everyone should stress-test their deals to ensure they can cash flow with a rent decrease. As more people leave Chicago, there will be less competition for rentals and prices may drop a bit. Also, we should watch out for the major influx of luxury condos. If there is an oversupply, they will begin offering concessions and the ripple effect could be felt down market as renters realize they can get more their money.

What are your current thoughts about the Chicago market now and future prospects?

0 Votes

Chicago, Illinois

Originally posted by @Adrienne Wonzer:

Thanks Garrett, I have been on the HUD site and found CHA a little disorganized but will try again. I appreciate everyone's input.

It is very disorganized. Still trying to figure it out. If you crack the code please share.

0 Votes

Chicago, Illinois

Originally posted by @Ann Rosen:

Hi. It sounds like you need to divide up your financing expectations. You may need a rehab loan to finish construction but not pull money out. And when the building is stabilized and rented and cash flowing, you can then refinance to pull cash out. Did lenders say why they are not comfortable providing financing to date? That will help the group point you in the right direction.

Thanks for the response. Recap. We had 5 units performing and were able to secure financing based on the 5 out of the 6 units performing. We closed the end of July and 1 tenant just picked up and left. Which left us with 4 out of the 6 units performing. Which did not allow for financing at those levels. So, we set plan B into motion, always be prepared. The plan obtain financing to immediately upgrade the property over 6 months instead of 2-3 years and bring the rents to the market levels in the area. We were seeking financing to do that in the amount of about $200k. We were just running into a wall of no. I am just reaching out to understand from more experience investors what might be the issue with the lenders in general. We paid $350k cash with 4 performing units and was seeking short term financing of $200k which is a loan to value of 55%. Also we have a great property management team at 606 Realty. Max, the owner, is doing a great job. I do recommend vetting him especially for any long distance investors. Just throwing it out there to increase my knowledge base. Thanks again.

1 Vote

Chicago, Illinois

All Forum Posts by: Calvin Lipscomb

Calvin Lipscomb has started 25 posts and replied 309 times.

Post: South Shore Cap Rates

Post: Should you Protect your Assets with a Prenup?

Post: Going for a burnt house!

Post: Should you Protect your Assets with a Prenup?

Post: Should you Protect your Assets with a Prenup?

Post: CLOSED on a 98-unit TODAY!

Post: Has Anyone Ever Dealt With This Company Offering Funding?

Post: Is the Chicago Flipping Market Done?

Post: First Rental Purchase

Post: Financing Options in the South Shore Area