All Forum Posts by: Gus Mardoni

I came across a great non for profit forum here on biggerpockets from about 5 years ago and learned a lot! I'm interested in learning more and bouncing some ideas. Anyone with experience in this sector up for a discussion? 🙂

I'm a new investor in the Lehigh Valley area and working on completing my team build. Would welcome feedback and potential referrals for real estate CPA and wholesaler operating in the LV areas.

All feedback welcome

The buy, rehab, rent, refinance, and repeat is understood what's not is the potential of refinance. Cash-out refinance opportunities of varying LTV rates with the most generous, that I'm aware, of 85/15. The length of time necessary to build enough equity to make refinance worthwhile for a new investment is not short duration, it's years. When I run the numbers on an amortization schedule over a couple years the potential for cash out opportunities are not significant.

Not sure if I'm looking at this strategy the wrong way... Clarifications? (Number examples very welcomed)

Costly factors when purchasing a  property, especially a buy and hold, are unforeseen costs, especially those that could have been avoided. For example: roofing, sewer, boiler, furnace, fire safety, foundation stability, led paint, etc.

The list is endless and so are the subsequent associated costs! What measures do you employ to mitigate unforeseen costly repairs, who do you include in your must come and inspect list (fire Marshall, roofer, architect, plumber, etc)? 

Investing is a risk--- risk reduction saves money, increases productivity and cash flow. 

I'm a new investor in the Lehigh Valley area and working on building a team. Referrals for real estate CPAs and attorneys will be very welcomed.

Thank you 

As my real estate investment education continues to expand I'm finding that it's the small details that take up most of the time, at least in my case. Secondary to financial needs I've decided to take on a partner, family member in law who happens to be a CPA (general CPA).

I came across this article from August 2016 which I found priceless for my needs. ( https://www.biggerpockets.com/renewsblog/flexible-...)

I would like to follow the path laid out by the author of creating two independent LLC's operating under a parent LLC.

Seeking assistance with two considerations: 

(Little background: I will be doing all the work associated with the rentals. His role is acting more as a finance assistance (investor) than a partner but I'm taking him on as a partner to avoid fees associated with investors and mitigating my out-of-pocket expenses. He also lives out-of-state which limits his involvement capacity).

Question 1: given my level of involvement vs his it's only fair that compensation or investment % differs-- Would splitting profits and expenses (post purchase) 50/50 but purchase costs (down payment, closing costs, etc.) split 70/30 (me 30%) be a fair?

(I understand these are terms my partner and I have to figure out but appreciate feedback to not set myself up for failure or him feel taken advantage of).

Question 2: once the earlier described partnership is established (parent with subsidiary LLC's) is it a once and done or does it need to be rewritten for each deal? (LLC costs can become hefty).

Thanks for any thoughts and feedback for advice to one or both questions.

thanks for the feedback, Dave.

I've always felt first posts, when seeking assistance, are a lot like an AA meeting-- Hi my name is Gus and I need help. Never sure how to start 😅 

Now that my ice breaker is out of the way (not that funny but points for originality?) let's get into it. I'm new to the biggerpockets family (recently joined) but been an avid follower for months. My goal--- build enough rental properties to exit the rat race.

I've thought long and hard about how to dive in but find myself stuck in analysis paralysis. After weighing my options, I find myself to be most comforted by going in with a partner and I have just the guy-- a cousin.

Little background: my cousin owns a rental property that he's had for 3.5 years. He hopes to expand his business but hasn't been able to secondary to lack on knowledge of options. He and I recently agreed to go into business together where everything would be 50/50, verbal agreement. My problem--- lack of willingness to deplete my saving account (newly married and financially insecure). This problem creates difficulties in delving in (20% down payment requirement, closing costs, repairs, etc.). 

My thought/plan: propose to my cousin that I buy into his current property. If he's agreeable to this, betting he will be, we can refinance his current loan and I will assume half the loan responsibility. He benefits by getting that cash up front, my buy-in (believe this is logical thinking?). If he's agreeable to this I can teach him some of the wonderful information I've gained here at biggerpockets, such as withdrawing equity from our now mutual investment and use that to secure a second investment, then a 3rd and so on. I've been able to secure contacts that will assist in future investments (inspector, contractor, substantial discounting for rehab necessary items).

Is my thinking above logical (given cousin is agreeable)? Would it work out as laid out (able to immediately withdrawal available equity)?

I have money set aside and can go at this independent of a partner but I'm choosing this method to reduce up-front self-risk. Thoughts, feedback and suggestions greatly welcome. Thank you ☺️