All Forum Posts by: Dan Buchta

Good review. I went to a meeting a few months back and reading your post now reminds me of how I felt very similar at the time. I've read other posts talking about most of the attendees are "window shoppers" who won't seriously pursue any deals. Similarly, I've seen posts saying that meetups are a more viable option to find serious partners.

This is coming from someone who's spent most of their time on the side-line reading and watching, so take it with a grain of salt :)

Thank you, I appreciate it. I don't believe I can do the loan by myself because I don't have 20% down yet, which is why I was looking into a partnership. For other readers who find this post, I found this article to be helpful https://www.biggerpockets.com/renewsblog/2015/12/03/structuring-partnership-rental-properties/

Hi, this may seem like a silly question but I was hoping to get more information on the different ways people can partner together to invest in real estate, and what that really means. Here's some back story as to why I'm asking:

I'm looking to buy my first rental property in the next 6-8 months. The reason for this time frame is because I will not have enough money saved up to do a 20% down payment. Now I have read and heard a lot that I don't necessarily need 20% down in order to get started and that I could partner with someone else in order to get the necessary funds to get up and running. I have a few people in mind that I could potentially ask to invest with me but they also have no real estate experience. So before I go to them to discuss it, I'd like to understand what people generally mean by "partnering with someone"?

Do they mean to literally form a legal partnership in the eyes IRS or is it just more of a general term for an agreement between people?

What are the usual terms of the agreement? For example, if I have 75% of the down payment and plan on doing 100% of the work managing the property, what incentive should I offer my partner? I would assume you offer a percentage of the equity, but how much is a fair amount? 

Also, what if I want to put more money into the house to force appreciation a year later? If I partner with someone for $10k but then put $20k into the property a year later, do they reap all the benefits of me doing that as well?

Also in the above scenario, if I offer my partner a portion of the equity but my end goal is to fully own the property at some point, how can this be accomplished? Can they refuse to be bought out? Is there a way to work a timeline into the agreement?

Lastly, how is any of this enforceable? I can understand if it was part of a legal partnership but if it wasn't then I don't quite see how any of it could be.

Thanks!

Hi, this is my first time posting and I'm new to the site so I apologize if this is the incorrect place to post this. 

I was wondering if anybody had advice/realistic cash flow numbers I can set as a target goal for my first rental property? I'm looking in Northern Fort Worth area, closer to Keller with a price range from 130k - 180k. I feel that homes appreciated so fast in the last year or two that it will be very difficult to find a home that yields more than $100 cash flow. Since this also would be my first rental I don't want to bite off more than I can chew and get a complete fixer upper, I would however consider getting something I could do small renovations to.