All Forum Posts by: Greg Junge

Hi BP,

I've been on here for a while and love the community and chime in from time to time. I do want to post more and be more active on here because my goal this year is to transition from Full time Realtor to full time investor, or at least shift my percentages to the investor side.

I have been a buy and hold investor in Phoenix since 2012 and it's been great, but I've only seen the upside of the market cycle, which I am well aware of.  My goal is to use my realtor skills and expertise to buy sfh's with partners and use their money for the down payment, so it's no money out of my pocket.  I'm looking at other markets where the cashflow and appreciation are both present, mainly markets in florida, but that's not why I am posting.

Has anyone put together a deal structure where my business partner puts in the down payment and is on the mortgage, and does nothing else, while I find the deal, find the property manager, manage the PM, set up the bank account, and I'd be on the mortgage too. 

For example, we buy a 120k house, my partner puts down 30k, we are both on the mortgage, and I would manage everything and my partner does nothing else.  My question is, what would be a fair split of ownership for this type of deal? I know it's not a black and white answer, but just wanted to hear opinions on what people think is fair, or if people have done this before, what split did you work out? 

Any thoughts are appreciated and if @Jay Hinrichs would chime in, since I know he has creatively put together deals in the past.

Thanks in advance BP!

I just read this crazy long thread from beginning to end and WOW! I had a few turnkey providers on my radar in Memphis for recent out of state purchases but I have since crossed them off my list.  I'm sure there are deals in Memphis, even if you buy over 100k, which I would, to avoid many issues.  But it seems that Memphis is a highly rental heavy demographic and selling retail at the end isn't ideal, compared to other markets. I'm sure it can happen, but just not ideal.

I'm looking at a few other markets that have both cash flow and appreciation benefits, along with a solid exit strategy for down the road.  

Great thread, and really impressed with

@Jay Hinrichs comments, viewpoint, and outlook. I listened to your podcast in the past and recently re-listened to it.  Great job diving in! I'd love to connect...

Best of luck to all!
Greg

@Cheryl Vargas Unfortunately I don't know any landlords doing this in your area, but I agree that talking to them in person is much better than emailing them. It's just too much info to send in an email.

@Eric P. Thanks for your interest in my property. I sent you a pm with all the info. Please let me know if you have any questions. If it's easier to talk on the phone, we can do that as well.

@Eric P.

I'm actually an owner who wants to rent my property using rental arbitrage but can't seem to find many people willing to do this in the Phoenix are.

I have a single family house, renovated and furnished and just want a monthly check to cover my expenses plus a little premium, and that person can run it as a short term rental and make the money on that end.

if you know investor that are interested in doing this in Phoenix area, please let me know. I'd love to connect with these kind of investors.

Greg Junge

@George Mevawala I just sent you a request to connect. I'd like to pick your brain and talk to you directly about airbnb if possible.

Looking forward to connecting. - Greg

Thanks @Eamonn! I guess the compelling factor to pay down the primary mortgage is so that I can reduce my mortgage count by 1, since my wife and I only have 10 mortgage spots each (and the first 4 are arguably the most important), and I can take out a HELOC on the primary up to 90%, allowing me to use that HELOC to make investments in the future. That's my reasoning for doing this.

I believe in using leverage as much as possible when buying rental properties, and my primary as well, but I have a few other motivations for doing it this way.  

@Eamonn McElroy I'm really not doing it for the interest expense or benefit. It's more for the benefit of having access to cash to buy more deals.

Another idea is to pay down my primary to zero, then sell it next year when we move, and the proceeds will be tax free capital gains and I'll have that cash to use for future deals. And I eliminate a mortgage at the same time, which helps with my 10 loans, 20 of I include my wife.

Thoughts?

@Eamonn McElroy Thanks for your thoughts on it from the accounting side.  I would run this past my CPA, as I do most deals.  I know I don't itemize with the new tax law, but I do have investment income from 4 different buy and hold properties, so that might be worth it.

Learning about note investing is on my list for 2019, Since I have some sdira funds that I want to use. Does anyone know of a "turnkey" operator for note investing? Is there one, or do you have to learn everything from the ground up and start from scratch with note education? Any help will be appreciated!