All Forum Posts by: Evan Polaski

One of my friends did this with his uncle.  He was the money, his uncle was the contractor.  Their deal was: Uncle would "bid" the project for labor at normal rates.  Here is simplified example:
Purchase Price: $100k
Material Price:   $50k
Labor:               $50k
Total:              $200k

Uncle works for free, then recoups his $50k on sale and takes 25% of profit as his profit for working for free.

Hi Latrice - and welcome to Bigger Pockets.  In my experience, longer is not better.  

For reference my residential lease is 7 pages, and has always protected me.  I always meet my tenants in person to sign the lease (I have a small personal portfolio) and talk through each item.  In my experience on the commercial side, a long lease form is daunting, and typically does add any real protections.  You will learn more about the type of tenant you are getting by talking with them and their references than any other way.

As both an agent and an investor myself, I can say Todd has it right.  It also works in life in general, don't be a pain.  If you can tell that a property doesn't work for you, don't waste your time and your agent's just to "see".  

And also know that throwing lowball offers is one thing, but, again, save everyone's time by making sure to only do that on deals that have been sitting a long time (in my market, I give it 30+ days).  

Moral: be respectful of agent's time, and honest with them right away, and you will be good.

Is it a well known construction company?  Are they guaranteeing the lease?  Would they require you to furnish the house?

Personally, I would not have a problem, if the construction company is reputable, financially sound, and on the hook for the lease.  You will likely have an easier time collecting on any damages from them than a random tenant.  

In this hot market, it can be hard, but not impossible to find good SFH rentals. I have only been able to find lenders that do 20 yr am, 5 year term commercial loans. My properties are all held in my LLC, and I wanted my LLC to be the borrower to begin establishing credit for the business.

In order to get into 30yr loans, property has to be titled in your name, and you are confirming in the mortgage docs that you are an owner-occupant for at least the first year.  

@Sharifa Bennett Congrats on the purchase.

You will want to confirm with local law, but the typical scenario is all will be handled on closing statement, as a credit to you.

Tenants will pay March rent to current owner and you will be credited for the rent for your proportionate ownership for that month.

Also, security deposits will be transferred to you, as you will be assuming responsibilities as landlord. You should confirm that deposit has not been applied to any late payments or missed rents. And if it has, there is documentation of such to prove tenant is not due the deposit back.

@Rich Somers how many units in total are you talking about? Sean Sullivan with Tenants 1st is a great manager. I will message you his contact info.

@Jeremy James Hartman Congrats!! If you are like me, you just need to trust your initial instincts when you start second guessing what you have just done. 😁

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