All Forum Posts by: Jason F

Are you dealing with an individual or a bank?

He is going to need to take it to auction.

Isn't putting the property on the MLS marketing to other agents.

Guy sounds like he's just an agent that gets a lot of listings and then hopes that another realtor sells them. Think about it, less work, ad money and time spent on his behalf.

There are actually very clear and defined factors that must be reached for the economy to officially be in a recession. I always hear the talking heads discussing it back and forth without every really considering the meaning.

Ned, I think most investors on here will have a different view concerning paying mentors because the knowledge you are providing to a client is 'everyday knowledge' in the RE investing world. Therefore, it has to be hard for others to believe that it would be a good deal for someone to commit 50% of their profits just for the sake of having someone give them guidance.

I agree, if these people couldn't do the deal without you, than it might be worth it for them to pay you. 50% of $50,000 is better than 50% of $0 (without considering the risk involved).

Would I every pay someone part of my deal for helping mentor me, no. But then again, it might help someone who doesn't want to take the time/money to learn it on their own.

Thanks for clarification.

Do you both still do deals together?

If your LLC qualifies for the loan you can buy them using just your LLC as the guarantor. But that means your LLC needs to be making enough money or have enough assets to qualify for the loan without a guarantor.

Don't personally buy them and then deed to the LLC. Why wouldn't you just buy under the LLC with you as a guarantor on the loan? Either way, your name is going to be on the loan.

I agree, attorney fees can add up very very quickly. Spending too much on an initial operating agreement can be a waste as you may never find an investor to use it with OR that investor may want the contract to be re-worked with changes.

My suggestion, and what I've previously done, is basically sit down for a week and do your best to construct your own contract. In my opinion, the operating agreement needs to outline the investment specifics best as possible and cover as many 'bases' as possible.

The agreement should hit these points:

• the members' percentage interests in the LLC
• the members' rights and responsibilities
• the members' voting powers
• how profits and losses will be allocated
• how the LLC will be managed
• rules for holding meetings and taking votes, and
• buyout, or buy-sell, provisions, which determine what happens when a member wants to sell his or her interest, dies, or becomes disabled.

You never know, keeping it simply may help attract more investors than you think. No one ever likes to think that the person that they are working with is more "lawyered up" then they are.

Coming up with something simple may save you a lot of money and give you a good foundation for going to an investor or an attorney to fix the holes.

Hope this helps

I have a commercial property that I will be renting out to a group that will be starting a feed/tack/horse training facility. The property is on a major highway but has always been a ranch.

Currently the property does not have an insurance policy but I would like to make sure one is in place when they are leasing and get them to pay for it.

Can I require that the tenants purchase property insurance or business insurance and list the owning LLC as 'Named Insured'.

How exactly does that work? Would it need to be property insurance or can it be insurance covering the business operations that also protects the property?

I'm looking to set up something similar to a NNN, but with them just covering insurance.

Thanks.

Your investors will most likely want a mortgage on the property OR ownership in the LLC that houses the property. You have to give them something in exchange for their money.

Mortgage on the property is the easiest. Ownership in the LLC will require an operating agreement that will outline the investment.

Depending on how serious you are at approaching investors, you will probably need an attorney to draw this up. Maybe you can have the investor use theirs so they are comfortable.

I wouldn't worry about the SEC unless you are starting to get heavy into national advertisements and solicitations. Start small. Start local. Trust me, if you start reading the SEC rules on this stuff you will quickly find out that most EVERYTHING is against 'policy'.