All Forum Posts by: Dennis Maynard

The math is exactly that: 100/160 = 62.5% ownership to you the remainder to the GC.  You are controlling interest and make all the decisions.  They become a partner.  who is signing on the loan, you?  Then you are the general partner in the partnership cause its your butt on the line.  It's best to envolve an attorney to draft these agreements.  It's worth the money, and they will think of details that you won't.  You can use a letter of intent to lay down the initial structure to hand to an attorney, but if you don't know, then just go straight to the attorney.  There may also be a profit sharing structure as well.  Again, keep it simple, get good advice from an attorney.  The $1,000 is well spent and they have to pay their share of that costs.  Up to you on the others.  You will have to do an LP unless they qualify under the securities laws.

@Adam M.  I would think a guarantee for 6 months either in deposit or letter of credit would be normal.  Every deal is different.  I would just double check your due diligence, and keep reserves if it goes vacant.

Hi everyone, just wanted to know where everyone is investing and looking, and what type of product (SFR, 2 - 4 unit, commercial)?

Compare the budgets, where is the fat?  Based on those numbers for a small project, I would say that's not too far off.  Sticks hard costs usually starts at $175 psf without soft costs.  So seems about right at $250 - 300.  You can send me a note if you like and I'll look at it.

What is the security and guarantees?

You can post, just remember that images sell.  So if you do, update your rental posts regularly with images that show the upgrades and progress being made.

On the surface, it can be a win for both.  Get everything in writing.  Make the equity values commiserate with what is being contributed in both 1st money, next time.  Sweat equity has value, but not as much as capital.  Start small, go project by project to try it out so you are not locked in.  If it works, form a Partnership or corp and go ham.

Depends what where how and with whom.  Look, if the market turns down, you'll have plenty of renters.  The flip side is you will loose equity value for a few years.  If you are okay with that, and the numbers work, and your in it for the long haul and not to flip it in 2 years, then you should be fine in theory.

Call an accountant and an attorney.  Pro's cannot give tax advice.

@Mark Bommarito Mark, I'm experiencing some of the same challenges.  Even as a professional, it requires a lot of time and research.  Perhaps there is a way to form a local group to do research together and talk things out.  I've thought about this for a while.  Let me know what your thoughts are.