All Forum Posts by: Account Closed

I think you should do just that, or whatever you can to show your value in the partnership. I was in a similar situation and decided not to pursue the partnership because we couldn't agree on the terms.

Welcome @Patrick Donahue.

What interested you in the house? I think Suzanne's question is trying to ask what strategy you identified that made this house ideal in your eyes!

@Jon Reed regarding the sewer line, was that something an inspector recommended or did you just have to learn about it along the way?

@Dan Rowley

From what I'm understanding from the experts - it is highly inadvisable for newbies to invest OOS, which I find very discouraging unfortunately.

@Darius Ogloza I completely agree with you. I think @Justin Thorpe's analogy to stocks highlights this. There is a difference between being an investor and gambling/speculating.

I am very surprised that this topic is so two-sided but am grateful for all the opinions shared thus far.

From the folks that don't like investing out of state, the primary reason appears to be the higher risk involved. The arguments for not investing OOS include the inability to manage the property hands-on or see it regularly.

For people that have success investing OOS, I can see that they leverage a good team and know the market well to mitigate the above risks.

So then I ask - if real estate is a game all about risk management, and strategies have been identified to reduce that risk, why is OOS investing still considered too risky? Build a good team, assess the market well, and run the numbers correctly. Is this not what a savvy investor would do when investing locally? 

Yes this is incredibly simplified, but my opinion is that whenever you limit yourself to one geographic area, your opportunities are severely limited as well. 

Welcome, Chet!

Check out https://www.biggerpockets.com/guides if you haven't already. It will help guide you on the next step of your real estate journey. I'm always happy to connect and share ideas as well.

Best of luck!

As @Greg Scott alluded to, if you are not a high net worth individual, it doesn't necessarily make sense to establish an LLC for your strategy and niche. As long as you are being ethical and abiding by the law, you should have no problem with a good insurance policy. An LLC does not automatically protect your personal assets if something goes wrong - look up piercing the veil.

That said, I believe an LLC can provide a limited degree of anonymity if that's what you desire.

Whatever you decide to do, make sure that the obligations, responsibilities, and expectations of compensation are known up front before you start doing any work. You will know if your friends or partners are truly committed if they are willing to spend the couple thousand it may require for an attorney to draft up a general partnership or LLC agreement.

50 thousand in liquid savings? If we ballpark and say even on the high end rent is 4k for a 3b/1ba in the FiDi, that's more than a year's worth of money to cover rent if someone were unemployed. Not trying to criticize (enough people on this thread have raked you through the coals already) but am curious what the reasoning is.