All Forum Posts by: Daniel Suarez

Hey All, 

I'm buying a property with another partner who lives outside of the country. We're planning to go in 40% me and 60% them. I am in charge of managing, getting the deal, getting the credit under my name, getting tenants, keeping track of rents and they will be just passive. i was planning to charge them an extra 10% so even though we go 40/60. The cashflows and ownership will be 50/50. Does that sound fair? 

Also, with cashflows it is straight forward, but how about the equity on the property? Would you keep that 50/50? or is it fairer to do 60/40? 

Thanks in advance. 

Hi All, 

I have a multi-family under an LLC with my partner that we plan to sell and 1031 exchange for another bigger multifamily. The other LLC is much more expensive and we plan to join forces with another foreign national LLC. Since we're doing a 1031 exchange, the new property would also be under the original LLC, not including the foreign nationals in the title.

Our plan was to buy the property with the original LLC and get a commercial loan with the original LLC (the title and credit will be under me and my originals partner's LLC) Once we do that we plan to form a Joint Venture where all of the income and proceeds of this property will live and it will include the foreign national members.

The reason we would do that is because getting credit with foreign nationals is very hard, and the new property needs the same owners needed originally. I would love to hear some thoughts on this. Thanks so much in advance. 

@Russell Brazil are you renting that Canton one by the room? Also, was it a chap Reno? Would you mind sharing some numbers?

@Ken Chud Where do you get those numbers? If he refinanced his 200k, his new mortgage is $810 pm + 60 ins + 200 taxes so $1060 not what you mentioned. Yeah the $2000 a month sounds realistic, maybe a bit more with section 8. 

Hello All, 

Wanted to see if anyone else went through the same experience. I'm looking at buying an 9 plex in Maryland for about $2m with another partner. He would put 75% of the downpayment and I would put 25, making us 75/25. The problem is that he is not a US citizen or even lives in the US and I'm having trouble finding commercial lenders that would lend to us. He has an LLC formed in Florida and Tax id, but no US income or anything yet. Has anyone done anything similar?

Thanks in advanced. 

@Brandon that's exactly what I need to do, I need to take pictures of everthing before and after and send them a reminder before they leave so they know, that's a great idea and something i've been slacking on. The inspection is also something I need to do more often. In your inspections, do you check the cleaness of the house? Can you point out if the house is dirty? or do they have the right to be dirty if they want? Also what is normal dirtiness vs not?

@Theresa Harris, that is an excellent idea about the carpet replacement and also the same would apply for painting. I'll definitely start doing that

Hey All, 

These is kind of a 2 step problem. First, I had a tenant turn in the house after the lease was up and left everything in really bad conditions. Stains in walls and carpets and the house was digustingly dirty. I spent about $5k fixing it. Repainting the entire house, replacing the carpet with LVP and fixing a lot of small things and cleaning of course. She is arguing that the carpet and wall are regular tear and wear and that I should give her all her security deposit, but pet stains and dirty stains that don't come off with washing or steaming are the tenant's fault, right? 

Now the follow up question, what is your procedure when the tenant is moving out to make sure there are no security deposit issues? I'm thinking of doing a pre-walkthrough before they move out pointing out the things they need to fix and how much it would cost if they don't fix them before moving, that way they know ahead of time, any thoughts? or anyone else does something similar? or any other tips?

Current cashflow is about $750 per month. Refinanced cashflow at $165k would be $680 a month pulling out $27k. I would need to add about $30k to buy one more property that would cashflow similarly about $700 but with fewer headaches and building equity ARV would be closer to $250k.

The other option would be to sell this one and get about $70k. I would need to add about $50k to buy 2 properties each will also cashflow about $700 and build equity that i can later also cashout-refi to reinvest. 

Hello, 

I have a property in Baltimore that I'm renting. The lease ends at the end of May and I'm trying to decide if I should I sell and reinvest or cashout refi. 

Some context; I bought the house 4 years ago and owe about $90k, the current value is about $180 after some repairs. If I sell, I could take the profits (about $80k after fees) and reinvest in maybe 2 $200k fixer-upper places in a better neighborhood that might need some love. Of course, I would need to add a bit more in the repairs mostly cosmetic. Each house would rent for a bit over $2k. 

The other option is keeping the house, cash out refi, and use that money to buy 1 house in a better neighborhood. That house would rent for about $2k and this would rent for about $1800 max. The problem I'm having is that this house is in a C class neighborhood, my current tenant is extremely demanding and a pain, and keeps on complaining about rats in the alley behind the house (nothing I can do) I worry keeping the house will attract not great tenants, and also the problem that for a reason, the houses I get appraised always come back lower then the price, I have a haunch that my lender will appraise the house at about $165k with 75% cash out i would only get about $35k out to buy another house.

Any suggestion would be greatly appreaciated. 

Yes, i think there's still a bunch of opportunities. The prices points have moved though. Before you got something for $100k and the arv was $150k. Now they're closer to $130k and the ARV is $180k