All Forum Posts by: Christopher Yerikian

Hello fellow real estate investors and enthusiasts. My partner and I purchased a fourplex in San Antonio TX this past December. It was a full rehab job and we are about 60% done with the project. Our contractor had to leave the project and we’re scrambling to find a replacement that will work within the remainder of our budget and timeline. We’ve completed foundation/leveling, floor plan, plumbing, electrical, roof, windows,

exterior paint, insulation, HVAC, and all the drywall is up... we need floors, cabinets, tiles, counters, fixtures/finishes, and interior paint. If you are a contractor or know any contractors working in the greater San Antonio Texas area please reach out to me ASAP! There are future projects in the works so this would be a great opportunity to start a business relationship. Thank you!

So we're at what is starting to look like the beginning stages of an economic downturn. We don't know how long it will last, how deep it will go, or which sectors it will most heavily impact. What we do know is it will happen. As Real Estate investors we are all still a little spooked from 2008, however all the regulations that followed have positioned this asset class to endure a downturn and not suffer a similar fate. Then again prices have reached some astronomical levels over the last couple of years, making that potential correction percentage look like it'll flex some muscles.   

What are some of you doing to weather the storm over the next 12-24 months??? For flips, rentals, BRRRR, and large multi-family

The most common thing I hear for new acquisitions, which is what we are doing, is buffering our numbers with an overall 10-15% correction for 12 months from the time of purchase. 

Hi Jackson,

The simple answer is get together with an attorney to put all aspects of the project in writing. Formation of an LLC/LLP & who's going to do/pay for what, whether it's 50/50 or otherwise.

The not so simple questions are that of trust and putting those pieces in play, understanding the business lines you've both drawn on the project. Sit down and talk it out as much as possible. The good, the bad, and the ugly. The more protections you both can put in place on the project the better. Invest as much if not more into the "what can go wrong" in the partnership as you would the upside.

Form an LLP and contract out the terms of your project for all the lots. The payment structures for down payment and construction are really up to you, but just makes sure it's in writing and you both are clear what your stakes and responsibilities are.