All Forum Posts by: Dave Vona

@David M.  Thanks for your reply.  Sorry if I wasn't clear with my post.  I was thinking about leasing the property from the owner, doing the rehab, and then leasing to a tenant.  I think the type of contract is a "master lease", from what I've been reading.  I would split the rent with the owner in some fashion.  I would need to recoup my rehab costs either through taking a higher percentage of the rents for a period of time, and/or making sure I was entitled to some of the funds if the owner were to sell the property.

Thanks @Nick Schlabach. The partnership sounds something like what I was thinking using a form of master lease. I'm not that familiar with an NNN lease, I just know that means the leasee pays most, or all, of the expenses.

Hi, I’m looking at a home that’s not been occupied for many years. I’m going to see if the owner is willing to sell, but I don’t think he will. It appears there is no loan on the property.

I estimate this property needs ~$30K of rehab for it to be ready to rent. I think monthly rent would be ~$2,000. I wanted to know if there’s a way to structure a sub-lease that would allow me to do the rehab, even though I wouldn’t own the property.

I thought if I was able to collect all of the rent for some period of time to recoup the rehab costs before I start paying the owner. If the owner wanted to sell the property after I fixed it up, I also want a way to recover the rehab costs by collecting some portion of the sale proceeds.

Does anyone have any ideas how this deal could best be structured if the owner was willing to sub-lease?

Thank you.

@Byron Valles

@Sean Morrison

I ended not purchasing any rentals yet, I've been flipping homes to build up additional capital. After talking to a local real estate attorney, I created an LLC to perform the flips. Once I start purchasing rentals I will also create an LLC for those. I won't do any business in my own name for liability purposes.

Hi Ofek, I haven't done any investing in Omaha yet.  I still might next year, but I can't recommend any contractors at this point.

Mason, this site has some good real estate data, it's owned by Berkshire Hathaway: 
https://www.berkadia.com/research-and-resources

Try selecting the "Berkadia: 2020 Forecast" to download a pdf with a review/forecast of a few dozen markets.

Hi David, you may want to talk to Peter McFarland at Long Law Group.  He works with many investors in the Denver area on asset protection and entity structures.  

@Joshua Cruz thanks for the tip.  I'll check that site out.

@Chris Coleman thanks for the feedback.  I hadn't thought about using a equity multiplier to trigger a sale, that's a good idea. I guess we'd also want to have in the agreement that, we may sell after 5 years but if the value of the property has decreased, we continue to hold until it recovers.

Hi, I'm beginning to look purchasing single-family rentals with a partner.  We would both get 50% of the cash flow and equity.  I'm thinking about how to structure the agreement for deciding when to sell.  It seems this needs to be decided before purchasing the properties, or at least determine how it will be decided later on.  So either you agree that the property will be sold after X number of years, or you give one partner the authority to make that decision.  Does anyone have any suggestions for structuring this type of agreement?  The goal is to avoid the situation where one partner wants to (or has to) sell in 3 years and the other partner would prefer to continue holding.  Thanks.