All Forum Posts by: Ethan McRae

@Sachin Amin I see- thank you. Any advice on seeking out a lawyer that can help me and my partner form an LLC? The world of real estate law is very foreign to me and I'm not quite sure how to get the ball rolling on this. Also, I am assuming you have a business contract/agreement with your partner did you form this after you formed the LLC or before?

My business partner and I are interested in house hacking together for about a year before moving out and renting out the property entirely. I would like to know if we should form an LLC given our situation. Of course, we will have a contract that has terms we both agree upon, however, I am unsure if an entity like an LLC should be established as well.

Thanks!

@Evan Polaski I see. Now, forgive me if I sound naive, but do you think the lawyer would be able to come up with scenarios that me and my partner wouldn't necessarily come up with? Thanks 

@Theresa Harris Very good, thanks. Any idea at all how much a lawyers might cost for this?

My business partner and I are interested in househacking either a duplex or a triplex together. Based on the research I have done it seems like a conventional loan would be more suitable for our situation for the following reasons...

-we both have great credit

-we most likley will be able to put down 5% 

-PMI seems like its much less than FHA mortgage insurance

That being said, it seems like we should go with a conventional loan. However, I was curious to know if there is any other advantages that I might not be aware of for FHA loans other than the fact that you only need 3.5% down and can have just ok credit.

Thanks!

 

My business partner and I are interested in house hacking together and then moving out a year or two after we purchase and renting out the entire house. This is our first RE deal. 

In general what advice would you give people in our situation? 

Many thanks!

My business partner and I are interested in househacking a multifamily together. Everything seems to be going great so far. We are working with an excellent agent and we are preapproved for a loan. 

However, I know that challenges will arise. Problems will come up no matter what and it is inevitable that we will disagree on some things moving forward. I am curious to know what some of the biggest difficulties have been for other RE investors who have worked with partners. More importantly though, I would like to know how me and my business partner can avoid difficulties that come with partnerships. 

Many many thanks!

@Craig Sloan Thanks for this, I think you bring up some good points. I am particularly interested in a decision making process/system and way specific way to go about resolving disputes. Problems will come up. Its not a matter of if its really just when and what will they be. That being said I really want to focus on figuring out how to systematically resolve conflicts in a way that doesnt put too much strain on our business relationship and helps us keep moving in the right direction. Thanks

My business partner and I are interested in buying a property together to househack for a year or two before moving out and renting the place out entirely. So far we have been preapproved for a loan and are working with a great agent. I have a solid foundation of RE knowledge however, I know nothing about how to go about forming a contractual agreement between us. I was wondering...

1. How exactly would we form a contract? Would a lawyer need to be involved?

2. What would need to be included? I know generally that we need to state that we would assume equal ownership and evenly split the cashflow from the property but I would like to know more specifically what should be included. 

3. Would forming an LLC be necessary at all for our situation? This might be the topic of a completely different post but I thought I would throw it in.

Many many thanks!

@Alex Olson ah I see, thanks. Any ideas on good ways to find lenders that would want to work with first-time investors?