All Forum Posts by: Cary Hawkins

@Max Gradowitz Thanks! I plan to use a RE attorney to draft an agreement once we agree on the return metrics and roles/responsibilities.

@Evan Polaski That makes a lot of sense. Excessive focus on percentages can cause you to miss the absolute numbers; I will keep that in mind going forward.

@Jesse Rivera Yup! We have a WA LLC but are already budgeting for those costs.

Thanks to both you and @Tanner Crawley for the answers!

Tanner,

Thanks! The partner is not very savvy or involved; they are solely providing capital. Do you have similar guidelines for a straight equity split if I wanted to avoid doing a preferred return?

Hi!

I am starting a Joint Venture BRRRR with a family member in the San Diego area. I will be bringing 5-10% of the equity in the deal, and the family member will bring the other 90-95% of the equity. I will be fully acting as the GP and managing all aspects of the BRRRR. I want to structure it as an equity split. Does anyone have any good advice on how to do this? Should I get another 5% at each stage of the BRRRR? How much should I end up with?

Does anyone have any advice on how to structure this? If there are other resources via articles/posts/podcasts you recommend, I will also take those.

Thanks!

Originally posted by @Colin L.:

Originally posted by @Cary Hawkins:

Does anyone have recommendations of ADU design/build firms? I'm budgeting $250/sf for construction of a new ADU, is this in the ballpark?

 Calhomeco construction is one that comes to mind.  

Thanks! 

Originally posted by @Dan H.:

Originally posted by @Cary Hawkins:

Does anyone have recommendations of ADU design/build firms? I'm budgeting $250/sf for construction of a new ADU, is this in the ballpark?

 Many things go into cost per sf.  New construction versus Conversion, size of unit, quality of finishes.  

On Larger units of new construction or existing space conversions, you can achieve your goal or exceed the goal.  On small new construction, you likely will need to allocate more per square foot.  

Good luck

Thanks for the info! I'm converting an existing garage into an ADU. The garage needs some structural work on the headers, and I'm not sure if the garage is attached securely to footings or not, so trying to figure out demo & new construction or convert the structure that is there. Shooting for low 700s in square footage, ensuring less than 750 sq ft to avoid impact fees.

Does anyone have recommendations of ADU design/build firms? I'm budgeting $250/sf for construction of a new ADU, is this in the ballpark?

Kyle/Chad,

Thanks for the input. I have reached out to both CAA and CalRHA asking why I should join their organization over the other. CAA is more expensive for me, roughly $100 more per year, but I'll gladly pay that difference for bulletproof lease forms and solid education on the byzantine maze of laws in CA. I'll update with what I hear back!

Hi all!

I am a San Diego, CA investor with a fourplex and looking to add more. I would like to find a good landlord/property owner association that can help with legal advice and leasing forms. CA Association of Realtors seems to have the most widely endorsed lease form but they are quite expensive, and for all the other associated forms I would like a lower-cost option. The general legal advice that comes with these organizations is also appealing. However, there are quite a few, from local to state-wide, so I am having trouble deciding who to go with. Any advice or recommendations?
Thanks!

Update:

I consulted with several real estate attorneys regarding RUBS/submetering. None of the attorneys were a fan of RUBS, stating that you cannot enforce payment of utilities via RUBS, only through a true submeter. One of the attorneys mentioned that some landlords have been sued for RUBS, under the grounds that through RUBS, the landlord is becoming a public utility and needs to be regulated as such. I will recoup the cost of utilities through rent increases. Unfortunately, that does nothing to incentivize less usage, but I'd far rather deal with that issue than a lawsuit.