All Forum Posts by: David Dunne

Curious what others think about how to account for the total loan amount when factoring in a buy/ no-buy decision for a rental property in addition to the CoC returns. The concern is the high debt and impacts to my overall ability to acquire future properties in the near future.

I am considering the purchase of a rental unit via a 0% down VA loan (clearly I would occupy for 1 year). The closing costs going in would total ~11k on the 280k loan. The (great condition) unit is located in Guam, and due to the demand of this particular unit (11 story beach view), the lack of supply, and steady demand, I forecast a continued rental income of 2250/ month on 1,975/ month expense with ease. ~275/ month after Mgmt fees and 11k down is a 30% CoC return. Not bad. But a 280k loan on my books would hinder my ability to acquire other properties for some time. Ideally, I'd like to have 2 properties within the next year.

There are other, lower-priced rentals around which would enable this, but much higher upfront costs with rehab required to attract tenants. 

Thoughts on how others would approach this are appreciated. 

Hi all. 

Would it be considered acceptable or ridiculous to ask an accredited and very active RE investor who is interested in a deal you are looking at (whom you hope to develop a positive relationship with and or/ partner or invest with you) to sign a non-circumvention agreement, prior to them seeing the deal AND prior to having the deal in question under contract? 

I do realize this may be a chicken before the egg scenario. Just trying to gauge it. 

Thanks.

Thanks Jessica!

Greetings all, and apologies if this question has been asked, but I am having difficulty gaining clarity. 

I am just getting started in my quest to invest in RE. My intent is to form a long term partnership with a friend as a General Partner, with the hope to do many deals, which will all have their own independent deal structures and Limited Partners. 

Example: Our GP split may be 50% for each deal (Each GP@ 25%). Other 50% to LP(s), but each deal will have different LP(s).

Is the industry best practice to create an LLC for each deal? I certainly don't think so...

Thanks for any help.