All Forum Posts by: Curtis Woloshyn

Let me make this clear, I'm not soliciting or advertising on BP,, I'm totally new to the real estate business. I would like to own rental properties, but do not have the time to babysit them. I'm wondering, after using social media etc to search for potential partners to create a joint venture agreement to purchase and manage rental properties,,,,, when I do find a person(s), the real question is How Have Other Successful JVP's worked in the past when people live thousands of miles apart, and they really don't know each other. How is the trust formed to do business together? I know it's possible to have jvp's between two people who live far apart, but, are they flying 3000 miles to meet each other in person etc to hang out for a period of time before committing to a jvp? What's realistic?

Ok Basit, so I'm open to the idea of being the " money investor", and just putting up the money for the down payment/closing costs, and then the "working investor" secures the loan from a bank in their name, they do all the managing /work associated with the property,,, and we're 50/50 partners on all profits/losses/sale of property in future,,,and I get my down payment paid back, variety of ways to do that,, the question is,,, and I'm a rookie to all this,, but if someone else has the loan in their name,,, and I put up the money,, on the property deed, do we both have our names on it as 50/50 owners? How do people do these deals when they might live thousands of miles apart? Do I have to show up in person and spend time in the area where the property is? I'm a Canadian, so theres the whole other issue with taxes for me in Canada, I can not directly have income earned in a US LLC because it will be double taxed for me as a Canadian citizen,etc, ,,I really want to invest in the US as theres so much more opportunities,, just want to make sure I do it right the first time

Hey Christian D, I'm looking at scenarios if I just did it the traditional way, put a % down, and get a mortgage to purchase, obviously more properties could be purchased this method, but the bank is making the interest, not me. I need to crunch more numbers and see what makes sense.

There are several reasons why I want to partner with my friend. He's been living off his rental properties for 3 years, that's his job, nothing else, so he has the experience in buying and managing rental properties. He's born and raised in the area, and has a knack for for negotiating the lowest price on not just properties, but everything he buys,, just one of those types of people. I'm from Canada, and property values are ridiculously high,, up there the numbers do not add up to buy a rental property versus the rental income they bring in,, it would take forever to pay off one property,,, so I want to buy in the US where property prices are way lower.

Hey Christian, I guess it's a long term approach. I could take that money and buy dividend stocks in the over priced stock market that pay 4-5% and in 10 years what's the value of those stocks? Higher or lower, than my initial purchase price? Nbody can predict that. What I do know is that I've made 4% on my money over the 10yrs, I'm only getting taxed on the interest earned, not the principle that is getting paid back to me monthly. If there's a bit of money left over each month, I would be getting taxed on my half of it. But once the house is paid off in 10 yrs, the monthly cash flow is greater, and I've recouped all my money back, and made 4% on it. Then when we decide to sell, that money is split 50/50,, so that will be a good chunk of change. But if I can do this a different way that will benefit me,, I'd like to know.

 I'll lay this out as briefly as possible. I would like any advice/opinions on how we're going to proceed. If anyone has a better idea on how I should proceed with investing in rental properties, please share your ideas.

We're going in 50/50. I'm the money investor. My partner brings to the table his expertise and does the work ( finding the best deals, purchasing the property, overseeing reno's, lease agreements with renters, collecting rent, paying the insurance, property tax etc), he does all the baby sitting associated with the rental property.

I'm act as "the bank". When my partner finds the right property to purchase, I loan the money back to our partnership, as basically a mortgage. An example scenario we ran with the bank president was if we purchase a rental house for $40,000. I would loan the $40,000 over 10 years @ 4%. The rent would cover paying back monthly principal & interest to me, plus insurance and property tax. The little bit left over would be put towards future renos etc. If we need more money, which we will, for reno's, I would issue another loan to the partnership to pay for these.

From this partnership, my partner is benefiting by building equity in a property that he didn't have to spend a dime on,, but he does all the work associated with it. Once the property is paid off, the monthly net income split between us will be a nice little income. Someday when we decide to sell the property and split the money 50/50, that's when my partner will really benefit.

On my end, I have this money that I've worked hard and saved up all these years. It's doing hardly anything for me sitting in my bank account, earning almost nothing in interest. So I'm benefiting from being " the bank", earning 4% on my money, plus half the monthly net rental income, which will be a bit of money in the future after the house is paid off, and half the money from the house someday when we sell it.

Is there a better way to do this investment??? We have a bunch of things to figure out with the lawyer. I want to cover my butt. I won't be here to see what's happening with the property. My biggest risk is the trust I'm putting into my partner to do everything as according. I'm not sure how to have everything written up in our partner agreement so I can cover all areas. I'm excited and nervous! Any opinions or ideas on what I've described?

Real estate in Canada is crazy expensive! I was looking to buy rental properties in my own country, but the amount of monthly rent generated vs the price to buy rental properties,, the numbers just weren't adding up. I have a good friend who lives down in the usa who has now made a full time living buying properties for below market value, fixing them up a bit, and renting them. We've decided to try and work out an agreement between us to buy some properties together. We've met with the bank and an accountant, and heading to the lawyer on Monday. I'll lay this out as briefly as possible. I would like any advice/opinions on how we're going to proceed. If anyone has a better idea on how I should proceed with investing in rental properties, please share your ideas.

We're going in 50/50. I'm the money investor.  My partner brings to the table his expertise and does the work ( finding the best deals, purchasing the property, overseeing reno's, lease agreements with renters, collecting rent, paying the insurance, property tax etc), he does all the baby sitting associated with the rental property.

I'm act as "the bank". When my partner finds the right property to purchase, I loan the money back to our partnership, as basically a mortgage. An example scenario we ran with the bank president was if we purchase a rental house for $40,000. I would loan the $40,000  over 10 years @ 4%.  The rent would cover paying back monthly principal & interest to me, plus insurance and property tax. The little bit left over would be put towards future renos etc. If we need more money, which we will, for reno's, I would issue another loan to the partnership to pay for these.

From this partnership, my partner is benefiting by building equity in a property that he didn't have to spend a dime on,, but he does all the work associated with it. Once the property is paid off, the monthly net income split between us will be a nice little income. Someday when we decide to sell the property and split the money 50/50, that's when my partner will really benefit.

On my end, I have this money that I've worked hard and saved up all these years. It's doing hardly anything for me sitting in my bank account, earning almost nothing in interest. So I'm benefiting from being " the bank", earning 4% on my money, plus half the monthly net rental income, which will be a bit of money in the future after the house is paid off, and half the money from the house someday when we sell it.

Is there a better way to do this investment??? We have a bunch of things to figure out with the lawyer. I want to cover my butt. I won't be here to see what's happening with the property. My biggest risk is the trust I'm putting into my partner to do everything as according. I'm not sure how to have everything written up in our partner agreement so I can cover all areas. I'm excited and  nervous! Any opinions or ideas on what I've described?