All Forum Posts by: Carter Wallace

@Jerryll Noorden, thanks for the video. 

@Bryant Brislin, I'm considering getting into wholesaling and just getting educated.  How do you advertise a deal once you've got it under contract?  How does one get the attention of institutional investors?  And good luck, @Jamaine L. Cheers, Carter

@Ronald Rohde, thank for the reply!  Any chance you can speak more to why you would avoid joint tenancy or tenancy in common?  Was that for liability in having individuals named?  

As far as exit strategy, I was thinking of each of us reserving the right to buy the other out for fair market value in the event of someone wanting to exit.  But also, wouldn't either party be able to borrow against his/her %50 share in the equity?  And if that's the case, and said person defaulted on their loan, would that potentially trigger a forced sale on the property?

@David M. any thought on that?  

 

@David M. Thank you for the thoughtful reply! This is a rural property and 2 homes, plus an ADU are permitted, and for complicated reasons, I don't think we're going to elect to subdivide. In short, having the combined acreage that we do allows for a number of development advantages. Do you recommend any other type of legal arrangement for 2 parties (my family, and the single business partner) to co-own the land, and/or allow for borrowing against my 50%?

Hello BP Community,

I'm in discussions with a friend to co-own land as an LLC, and each build a home on it. I have a few front of mind questions, but would appreciate any comments relative to blind spots I might have. Questions:

How does borrowing against a shared LLC work, say if I want to Build and BRRR? Can I leverage my %50 of the property value to further invest?

My friend has agreed to let my family inherit the property after his passing, and I would like to pass this down to my children. Anything to note on LLC's and transferring ownership to a child?

Cheers,

Carter

Hello All,

I'm considering buying a property 50/50 with a business partner as an LLC. The property has two homes, and we will be inhabiting the homes separately. The deal is off-market, and we're getting a deal relative to what its market value is. I'm writing to get help in calling out any nuanced blind spots that I may not read about on legalzoom, etc. I'm particularly interested in borrowing against the property in the future to continue on with more real estate investment. How might it look like to borrow against the property in the future when we've improved it a fair bit, and I'm ready to invest again? How will this impact my personal debt to income ration? For context, my partner is putting %50 of the purchase price down in cash, I'm putting 1/3 of my %50 down as cash, and taking out a loan for the remaining 2/3rds. We should be able to pay down the mortgage entirely within 5 or 6 years. Thank you for any and all advice!