All Forum Posts by: H. Jack Miller

Main thing is to make sure they are real lenders. Their are many who pose as lenders but who are not.

Then you want to understand the economics of the deal.

Jack

I don't think it matters for tax purposes 

I would use a conservatives amount of leverage but be be careful and dont do to much to fast. Take it nice and slow

You may want to contact some private lenders, rates will be higher but they should do it

There are a lot of issues here. The first and most important is I would think 10 times before doing this with friends and or family. A lot can go wrong and does all of the time with an investment properties and even if its a finical home run, things can go wrong with all partnerships let alone family ones. Everything is always great in the beginning, but as things happen its easy to go off the road fast and hard.

Having said that and I would caution against it. Make sure everything is in writing, make sure everyone has the same short and long term goals, I would also have buys outs and capital calls worked out and part of the agreement in writing.  

Where is a lot to deal with example is everyone going to be a guarantor on the debt, most lenders want owners of 20% or more to be guarantors of the debt.

As far as the economics that's the easy part. Maybe do a preferred of around 9% and a split between the working partners and non working ones. Could be 50/50 or 70/30 or what ever anyone agrees to.

NNN deals are not for everyone. The cap rates are very low and many dont know how to deal with them.

They are great for some. But its rare. 

there is nothing wrong with pausing until everything is aligned, i think there are so many factors that go into buying and until they all align i think this is very wise.

Dont look at what you did not do. All you need to do is a few good deals and you will be set for life.

More investors die from indigestion then starvation 

maybe go back to seller and get a price reduction to make it a great deal. Someone said you need to make every disaster into an opportunity. 

we provide capital for JV equity deals

Usually most lenders focus on the property you are purchasing. However they want the borrower to have cash reserves. I am guessing since your borrowing the capital needed, this could be the issue.