All Forum Posts by: Jacques Cyr

@Nicholas Lehman question for you: is the plan for the original $100K be financed out at some point in the near future? For example, once you've completed the rehab /updates, or increased rents? If so, I would suggest a 50/50 equity split once both parties original investment has been refinanced via commercial loan. Also, from what I've gathered, you may be undervaluing your portion: e.g. the value of your time and efforts for research, inspections, rehab, project management, etc... 

For your LLC, you could simply form the LLC under your name. After which you will then form a partnership between your LLC and your parents, perhaps in a first lien position. Most of the partnerships I've done here in Grand Rapids, MI are based on either a straight debt position of ~10% (usually for smaller deals, and depending on how many we've done together in the past. Lower (~8%) the more we've completed). Or for larger projects, we'll establish a equity position: X% of profits after both parties have recovered their original investments. In your Buy and Hold situation, you could establish the same general structure, especially if the plan is to refinance after project is stabilized. You would be compensated for project and property management (Usually 10%).

Hope this helps. Good luck... 

Thanks for sharing summary. Some good information included. 

@Alison Dickens. Welcome to BP... and thank you for your service as an educator. The podcast are great aren't they? 

Yeah... San Diego is a pricey market. I have a few individuals whom I work with from SD area that have / are investing here in Grand Rapids, MI area (Mainly Buy and holds - Low vacancy rate and returns here right now). Detroit is a changing market (good way). What areas are you looking? (Detroit Detroit... or suburbs?) I have some local agent contacts that might be able to help. Sounds like you have a network there. Do you have the core individuals: contractor, realtor, agent, property management, insurance? If not, I'll do what I can to help. Don't have a ton of contacts for core, but I do know a few individuals that would know the right contacts. Hope that helps... 

Good luck, and hope you get started soon. Exciting times. Jacques 

Ryan, I agree with the others regarding being cautious regarding sharing the amount, but overall the folks on BP are trustworthy. Syndication would be a good way to go. Or you could also look at a portfolio buy, which seems to be fairly available now (at least here in Grand Rapids area - my local market). Whereas the larger multi-family / apartment complexes seem to be more challenging to find, though some individuals on BP may have better resources to help you. Good Luck... and not a bad position for you to be in. Congrats on the forthcoming sale.

@Account Closed. I'm in the GR area, and looks like you're in the SE Michigan area. I do have a few contacts in the Detroit / Down river market. Not sure if that would help. What type of subject properties are you targeting? Etc... 

@Gage Westhouse I, as well as another fellow investor, selected Berkshire Hathaway out of the gate mainly for their resources (initial training, as well as social media tools and training, etc.). Frankly fees are a bit higher than other brokers, but again - initial resources are solid and they have a solid brand. We are able to do more robust searches and reporting (beyond just MLS) through our internal resources.

At a later date (next year) we may move to another brokerage. 

@Gage Westhouse great question. I've been in REI for several years and finally got my license this past year. Mostly to sell some of the properties I have in Muskegon and Kalamazoo area. The goal was to pay myself commission. :) I believe Eunice and others mentioned the upside(s).

From my perspective:

• If you plan on simply buying and holding, and you have a relationship with an agent that understands investor perspective, then the cost would perhaps outweigh the upside. (meaning your desk fees, etc... could cost you more than you would make in commission). 
  • At Berkshire Hathaway we have solid resources for setting up alerts, and market reports to track markets as seller sided as the Grand Rapids Market is. (Sellers market)
• So far, I've been able to find more off market leads from my own marketing efforts, and/or my network (outside RE agents). 
• However, if you'd like to flip, or have the funds to do larger volume of units, then there would be good upside.  

Hope this helps. Feel free to reach out with questions: 617  775    9352 (M)

Jacques

jacquescyr.com or rubiconinvestmi.com 

If I'm understanding your question, I will sometime advise my clients to include statement indicating they will beat any offer by X amount up to Y amount, requiring some form of disclosure about said offer. This helps stay competitive, in the local Grand Rapids are market. 

Side note: Tend to agree with above statement about the 15% below for cash offer versus traditional finance, etc.; however, I would offer less with my above statement included. 

jacquescyr.com or rubiconinvestmi.com 

@John Haddad Welcome to BP. It's great that you're looking to invest, and you're willing to do the tough stuff now in order to enjoy the future. I second @Steven J.'s comments about understanding the Ghetto (look at Trulia or other crime reports and school districts. as @Cara Lonsdale mentioned you'll need to build your credit. One thing you could do starting now... is to go into local AA area credit unions and start to build a report with the loan officers. Ask questions... talk less... listen and ask for advice. They may be able to point you to other investors that you could partner with, etc. (perhaps...). Make sure you've run your numbers when you go into the bank (taxes, insurance, maintenance, etc.).

Good luck and feel free to ask any questions. Jacques

jacquescyr.com or rubiconinvestmi.com 

You could look in markets outside of NY. I'm betting you could find 2-3 cashflow turn key properties outside of NY that you could acquire, get rented, and then easily refi after a few months. Start playing with the house's (no pun intended) money. Not sure (constructively. :) ) how long you've been on BP but you'll see several discussions about the BRRRR method. With a good property management company, etc. you'd be able to have 2-3 perhaps 4 properties out of the gate that would generate $250+ month in cash flow per door. Then double down. rinse and repeat, etc.