All Forum Posts by: Derek Carroll

@Alberto Mazatan Trevino

You make your money when you buy, not when you sell.

Sometimes when you renovate but not with the simple cosmetic repairs and upgrades you see on most flips. True value adders like adding bedrooms, SF, converting single to multifamily or vise versa, changing use. Most of these are most advanced strategies. For someone just staring out I’d focus on a few simple cosmetic rehab only type flips and pay attention to purchase price and finding a great deal more than anything.

@William Decker

After 1-2 years of experience and showing the income on your tax returns They will use the income from the rent to calculate your DTI

@Justin Buchanan

I’d recommend everyone starting buy a college level text book on commercial real estate finance and investments. Bruggeman, geltner and linneman are all authors of good ones.

@Anil Bajnath

You don’t need to communicate any further. Start the eviction process and follow the procedures of your state. By the nature of the question I’d highly recommend talking to an eviction attorney.

@Patrick Hancock

You might also create an LLC together so that the down payment money isn't being borrowed but technically invested together. Your attorney might be able to create an operating agreement separating classes of ownership where your shares control the real estate and his shares simply get a 7% return. An attorney can absolutely craft something with split rights to achieve what you're after, it's just a matter of if the bank attorney will accept an operating agreement like that.

@Patrick Hancock

Since you said you’re using his money for a down payment I’m going to assume that you’re using a traditional bank or other financing method for the majority of the purchase price. They will get first position lien. Your private lender can get a second position mortgage secured by the property. That said, it will need to be disclosed to the first position lender and many won’t allow it depending upon overall leverage.

You can always record the second position after the first closing, and many lenders won’t care or know or need approval. They may however have a form you sign at closing stating that they’re aren’t any additional loans against the Property and You’ll need to disclose at that time. All depends on who you use for a lender.

@Brad E.

I probably wouldn't do this through up work or fiverr but you absolutely can outsource it to a dedicated bookkeeper VA. I'd want one who only does bookkeeping. I think QuickBooks has a forum or directory where you can find certified quickbooks professionals. Those are the folks that I'd have no problem hiring virtually.

@James Ahern

The most successful syndicators are usually the ones that started out in the industry and then began doing their own deals. Many started as brokers, financiers, or working directly for another large Investor (REIT, developer, fund). Many times you never hear from these guys because they have capital lined up waiting for deals. In my opinion that's the best way to start.

Second best is to start investing in small deals yourself and build a track record and get an understanding of doing deals. There are a lot of principles that you can apply across different property types and deal types. Just get any experience to start.

There are many successful syndicators who have a huge marketing reach, coaching others, mentoring.. It’s a great way for the coaches and marketing arms to build recognition for their own deals so it’s a great business model for them. I think a lot of the material being put out is great stuff and can absolutely a way to learn a good foundation.

What has me cautious is that everyone wants to be a syndicator now and many of those who are starting have no prior experience in real estate in general. That screams risk to me, but it can be overcome. Great deals still can be found or created and folks with strong business or management skills can learn to run a successful syndication.

Bottom line my recommendation would be to do whatever you can to get experience. Do small deals yourself, go work for someone doing deals or find someone to partner with.

@Cassidy Burns

On the properties that I self manage I will allow as long as it was a non violent felony and the current situation is stable (good job, income, credit).

On the properties I syndicate and have third party Managment, I leave that to the Discretion of the property manager.

@Russell Buxton

This is common but not all lenders like it. Consider negotiating for “release provisions” in case you want to sell off one of the properties. This allows you to pay down the loan proportionally when you sell a property and not have to pay off or refinance the entire portfolio.