All Forum Posts by: David Famiglietti

@Ada Ayala, I have a good friend at National Title Co named Linzy Turner.  She's really awesome to work with, give her a shout and let her know I sent you and she'll take great care of you.  I'll PM you with her contact info.

Kenneth, give my wife Jessica a shout.  She's a great agent (I'm biased of course) and works with investors quite often.  We're also in North Las Vegas so that may be a nice convenience for you as well.  I'm confident she'll work hard to find you what you're looking for and take good care of your transactions.  Apparently I can't post phone numbers on here, so if you shoot me an e-mail or PM I can get you her cell number if you'd like to give her a call or text.

Thanks @Chris Mason, I did some reading and it didn't seem lenders were a fan of adding so many borrowers on the note, but I'll call a few of my contacts and push the issue with them and see what they say.

I think "good" when talking about your ROI % is something you need to decide for yourself.

I know that with MUCH less risk, less thinking, less work and effort then REI, I can make 8% safely with my money.

So for me, I would have to be in low double digits plus to entice me into taking a risk with REI.

Its a question only you can answer.  I see most people more than happy with 8%.

 Obviously John, but what I was asking about is the mortgage.  They would all be benefiting from he asset by being listed on the deed, but how would they all be taking the risk together if all are not responsible for the mortgage?

Hopefully this is going in the right place, and yes, I searched and found very little on the topic which I find strange, so I'm going to see if I can get more input.

I have a handful of employees (3-6 that are serious about it enough to follow through at the end of the day) that are constantly asking me questions about my real estate investment deals, how I started, etc.

None of them alone have the cash sitting around to risk on a down payment for a decent rental here in Las Vegas.  "House Hacking" a Multi Family doesn't work well here because of where they are situated.  

We sat down and started brain storming and if a few of them got together with $5K - $10K each and formed an LLC they would have enough to put down on a cash flowing four plex or 2 nice cash flowing SFH's in our area of the city. They could save the income inside the LLC and even re-contribute from personal savings yearly to continue to buy property. Their shares would be based on equity in assets held and cash, so they could buy in or re-buy in unevenly, or buy each other out down the road, etc.

The more I think about the situation their in, the more I want to help them facilitate an investment group. I can walk through most of the inner workings in my head, but the one thing I can't get figured out is how do 4, 5, or 6 people become responsible evenly on a mortgage? Even if the LLC is technically buying the house, they'll have to sign personally for the mortgage and from what I understand banks try to limit co-borrowers to 2 or so.

Does anyone have any experience setting up such a group?  I'd appreciate some input on the "who signs the mortgage" part as thats basically the only thing I can see as an obstacle.  I understand the importance of using a lawyer and accountant to help set up the actual structure, but before wasting time and money on that level, I'd like to get a better understanding of how they would share responsibility for the mortgage.

Thanks in advance for any input or feedback from your personal experiences!

I like your #2 plan.  I had a similar idea after speaking with some of my employees I'll be posting about later tonight.  Did you ever get any takers?

I'd imagine this would work best with people you already are friends with, or at least are familiar with, and in your local area or area of investment.

The MLS, Craigslist, Zillow, Rentometer, and experience in the market. Usually a combination of all. Sometimes Zillow and Rentometer are way off, others, they are dead on after comparing them with the number I came up with after hours of research and phone calls.

Best way is comp'ing rents in MLS within a small distance from the property.

Chris, PM inbound.

My wife is a Realtor, so I just yell across the room to get comps for sales price and rents through MLS. ;-)

Most areas of northern Las Vegas, and North Las Vegas, I know the rents from experience and constantly evaluating deals in the area that I'm comfortable/familiar with.

The MF you're looking at is in a pretty rough neighborhood.  It depends on where you and your family are OK with living I guess, but not somewhere I would hang my hat.  It would be fine for a rental though.

With a quick glance it only comps out for about $75-$79K and rent in that area is realistically about $1/sq ft

Also, don't forget you'll have PMI in your payment, so after taxes, insurance, and PMI you'll be around the $700/mo mark. After allowance for repairs, and not using a management company, you don't seem to have any cash flow left once you figure realistic rent amounts for that hood.

 Nowhere near Vegas.  Its smack in the middle of the Reno Triangle between Reno, Sparks, and Carson City.

I don't know that area well enough, sorry.